LTC/USD has run into headwinds and is now within sight of important early January support, which if proven vulnerable could set off a wave of nervous selling.
Litecoin is traversing near the 145.50 level as of this writing. Highs yesterday and early today have seen the price touch highs above the 153.00 level, but the broad cryptocurrency market and LTC/USD are showing signs on reversals lower potentially being stronger than upside moves which are achieved. LTC/USD enjoyed a short bullish run the past week; on the 10th of January, Litecoin had a value near the 121.00 mark.
However, in the past two days, signs of weakness again have been demonstrated as resistance upwards has been rather strong. The inability to break through late December prices has kept LTC/USD within the lower realms of its price range and its current value is testing an important technical variable. On the 10th of November, LTC/USD was trading near the 304.00 level, but since then has suffered a serious bearish trend. A loss of over half its value has ensued.
And now, LTC/USD is again within sight of support level which, if broken lower and actually sustained, would be another bearish signal. While the current price of 145.00 to 146.00 may be looked upon as a relatively good outcome considering where LTC/USD was trading on the 10th of January, if downside momentum does in fact continue near term, support levels could once again be testing those lows.
LTC/USD does correlate rather well with the broad cryptocurrency market. Litecoin is viewed by some speculators as ‘poorer’ version of Bitcoin. However, LTC/USD now ranks as only the 22nd ranked cryptocurrency regarding market capitalization. Its days as a top cryptocurrency sometimes feel like a distant memory. Not that a ranking of number 22 is bad compared to the hundreds of digital assets now available, but it is not the same as being in the top five which is something LTC/USD used to enjoy.
If current support levels prove vulnerable and the 145.00 ratio begins to be challenged, sellers may believe LTC/USD could develop another fast downward cycle which could make support levels appear rather weak. Speculators who want to pursue downward price action within LTC/USD cannot be faulted. As always, speculators need to use risk management and have stop losses working to guard against the possibility of sudden reversals which can happen quickly.
Litecoin Short-Term Outlook
Current Resistance: 147.70
Current Support: 145.00
High Target: 149.90
Low Target: 141.30