Litecoin Forecast: Continues to Drift Slightly Higher
Litecoin has rallied ever so slightly during the trading session on Thursday to show signs of life again, but not so much in the way of momentum. We have been drifting a little higher from the $100 level for a while, and therefore it looks like the market is simply trying to find some type of directionality. We have been very quiet though, so I do not necessarily think this means that the market is ready to take off, rather than it is done selling off for the short term.
Litecoin has been in a downtrend for quite some time, cutting its value and have since late last year. At this point, the question is whether or not there are people out there who are still willing to sell. Whether or not that is the case remains to be seen, but the $100 level of course is an area that attracts a certain amount of psychological and headline attention. Bouncing from there is not a huge surprise but I would also point out that we have not necessarily taken off straight up in the air from there either. This tells me that the market simply has nowhere to be, and Litecoin will probably continue to struggle for bigger moves.
If we were to break down below the $95 level, then it is likely that the market could break down significantly and go looking towards the $75 level underneath. After that, we could send the market looking towards the $50 level. On the upside, breaking above the $125 level could open up the possibility of a bigger move, reaching towards the $150 level. The 50 Day EMA has been drifting lower, and it should offer a certain amount of dynamic resistance if we do rally. Because of this, I think it is very likely that we will continue to see sellers every time we do pop, as crypto markets are struggling in general.
Keep in mind that even Bitcoin has been struggling to rally for the longer term, and therefore it is likely that we will continue to see the downtrend intact, but if we were to break above the $125 level, then we may have to take a look at things yet again and assess whether or not crypto is getting ready to turn around.