Litecoin (LTC), the silver to Bitcoin’s gold, led the crypto markets out of 2018’s icy bear market, breaking out before almost everything else. But being first to run, it was also first to correct, and Litecoin corrected almost 50% in USD value from the local highs.
On some charts, however, the silver crypto has broken its downtrend, and could now be due for another uptrend.
Starting on the daily LTC/USD chart, we see that Litecoin’s blistering run to $146 retraced right through the very shallow uptrend line, tracked from February.
Now, after bouncing hard off of lows in the 70’s, it is retesting this uptrend from the bottom, as well as the important $100 resistance zone. Downtrending volume was broken on the reversal with two solid days of buying.
Already up 25% from the lows, Litecoin is at an important juncture under the $100 resistance level. It must get over or be rejected here, and be sent back down for new lows.
We notice here on the 12-hour chart that sell volume has been paltry compared to buy volume in the last couple of days. This makes a breakout scenario seem more likely, and the short term trend is clearly up.
Looking on the daily LTC/BTC chart, we get more evidence that upward movement is likely. Ever since Litecoin topped out in June, it has been downtrending under a clear resistance line, which has been tested several times.
But Litecoin managed to break out of this downtrend a few days ago, and is now holding well above the breakout zone. And again, sell volume is puny compared to buy volume in recent days.
Another push out of the present resistance zone couple easily catapult Litecoin into an entirely new medium term uptrend. Indicators on the daily LTC/BTC chart are solid, with RSI rocketing back to bullish levels after a clear bull divergence; and MACD plus histogram crossing over into bullish territory.
This initial breakout is a very good sign, and with a bit more confirmation, plenty of buyers are likely to step in ahead of Litecoin’s halving event – which is surely priced into the present market action.
On this latter issue, the question is: has the news already been sold?
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