- Litecoin plummets after violation support – initial downside targets in view
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Litecoin is down scarcely 60% year-to-date with prices coming a yearly lows after violation Feb trendline support progressing this week. The decrease is coming initial areas of support that could offer a reprieve. Here are a pivotal levels that matter for LTC/USD.
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Litecoin Daily Price Chart (LTC/USD – Log)
Notes: Litecoin prices have some-more than 20% given a start of Jun with a decrease now eyeing connection support here around ~89.23. This segment is tangible by near-term channel support (red), a revoke together of a broader pitchfork (blue) and a Sep high-day close. Note that a longer-term trendline fluctuating off a Jun lows comes in only revoke and IF prices are going to see any relief, this would be a initial symbol to look.
Initial insurgency stands with a 50-line around 101/02 with broader bearish cancellation during a monthly open during 118. A mangle revoke from here targets a 11/29 pitch low / 88.6% retracement during 76/78 – demeanour for a stronger greeting there.
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Bottom line: The movement form and broader cost movement suggests serve waste in store for Litecoin. That said, this is a initial are of stop that extent waste near-term. From a trade standpoint, a good area to revoke brief bearing with a miscarry off this symbol expected to offer some-more auspicious short-entries while next a median-line. A mangle next 76 would expected see accelerate waste for a cryptocurrency with such a unfolding risking a dump towards 54.26.
Litecoin IG Client Positioning (LTC/USD)
- A outline of IG Client Sentiment shows traders are net-long LTC/USD- a ratio stands during +13.79 (93.2% of traders are long) – bearish reading
- Traders have remained net-long Litecoin since Dec 25th; cost has changed 63.7% revoke given then
- Long positions are 7.4% revoke than yesterday and 5.2% revoke from final week
- Short positions are 1.9% aloft than yesterday and 43.2% 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. Yet traders are reduction net-long than yesterday and compared with final week and a recent changes in view advise that a stream Litecoin cost trend might shortly retreat aloft notwithstanding a fact traders sojourn net-long.
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— Written by Michael Boutros, Technical Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex or hit him during firstname.lastname@example.org