Litecoin Prices Rip Into Resistance Ahead of Hard Fork

Litecoin prices are on gait to post a largest single-day convene given a Dec record high with a allege violation above a Feb opening-range. The convene is now contrast near-term downtrend insurgency and a crack here would be indispensable to countenance a annulment of a multi-month downtrend.

Litecoin Daily Price Chart (Log)

Litecoin Price Chart - Daily Timeframe

Technical Outlook: Litecoin prices pennyless above a Feb opening operation highs monthly open insurgency currently with a convene now contrast a top median-line together of a forward pitchfork fluctuating off a record highs. This threshold is corroborated closely by a Fibonacci connection during 222/25– a tighten above this turn is indispensable to countenance a dermatitis of a broader forward arrangement with such a unfolding targeting 260 and a 61.08% retracement during 298.

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Litecoin 240min Price Chart (Log)

Litecoin Price Chart - 240min Timeframe

Notes: A closer demeanour during Litecoin cost movement sees a cryptocurrency surging by a monthly highs with a allege now struggling during a top median-line parallel. The technical opinion stays constructive while above a monthly open during 162 with a crack above 225 indispensable to fuel a subsequent leg higher.

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Near-term bullish cancellation now lifted to a yearly low-day tighten during 130– a mangle next this turn would risk poignant waste for Litecoin prices with such a unfolding targeting a dump towards connection support during 116 where a 200-day relocating normal converges on a 78.6% retracement and simple slope support. Bottom line: prices are contrast downtrend insurgency and we’re looking for a reaction. From a trade standpoint, I’ll preference longs while above a monthly open.

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LTC/USD IG Client Sentiment

Litecoin IG Client Sentiment

  • A outline of IG Client Sentiment shows traders are net-long LTC/USD- a ratio stands during +6.06 (85.8% of traders are long) – bearishreading
  • Traders have remained net-long given Dec 25th; cost has changed 19.6% reduce given then
  • The commission of traders net-long is now a lowest given Feb 7thwhen Litecoin traded nearby 136.42
  • Long positions are 4.8% reduce than yesterday and 1.7% reduce from final week
  • Short positions are18.6% aloft than yesterday and 43.8% aloft from final week
  • We typically take a contrarian perspective to throng sentiment, and a fact traders are net-long suggests Litecoin prices might continue to fall. However, traders are reduction net-long than yesterday and compared with final week and therecent changes in view advise that a stream Litecoin cost trend might shortly retreat aloft notwithstanding the fact traders sojourn net-long.

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– Written by Michael Boutros, Currency Strategist with DailyFX

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