This is a market that I think will continue to be choppy but supported.
Litecoin has rallied a bit during the trading session on Thursday as we continue to hang about the $140 level. At this point, I think the $140 level suggests that we are going to continue to see a lot of noise in this area as we have seen short-term support and short-term resistance. All things been being equal, Litecoin is a project that I think has a lot of interest out there from a longer-term standpoint, so I am looking for a recovery at this point.
If Bitcoin can start to rally again, and it does look like it is at least trying to, at this point I think it is possible that Litecoin could get a little bit of the “knock on effect” that comes from the big coin moving everything else. The $150 level above should offer resistance, but it could also offer a nice target going forward. If we can break above the $152 level, then I think the market is likely to continue going higher, perhaps reaching towards the 50 day EMA after that.
On the other hand, if we do break down below the candlestick from the Wednesday session it is possible that we could go looking towards the $125 level. The $125 level is an area of support that we have seen tested multiple times in the past, so it is an area that I think would attract a lot of attention. However, this is a market that I think will continue to be choppy but supported. That being said, the market was to break down below the $125 level, then it is possible that we could go looking towards the $100 level.
When I look at this chart, it is a bit surprising that we are all the way down here, but I do think that eventually crypto in general is going to continue to see more longer-term buyers jumping in, so I am constructive at this point, but I also recognize we have some work to put in before this really takes off. Ultimately, I think this is a market that will be volatile, but you can see the same thing about almost every market that I follow right now. Having said that, Litecoin is widely used, and of course one of the better forms of payment as far as speed is concerned at the moment.
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