Let me start by saying that I am a long term hodler of Litecoin and have even went as far as locking some Litecoin on my Nano ledger and the Coinbase Vault. This is all in the name of prevention, i.e. preventive measures so I don't do anything rash with my Litecoin stash. Yes, I would have made a better trade on LTCUSD by converting to cash around $370 when we attempted and failed at another high and buying lower, but I didn't need the stress over the last few weeks of the holiday season.
Do I wish I was cash then rebought? Of course, but were are here now and need to assess the next steps in Litecoin's trajectory.
On the 4 hour chart it looks like we are pivotal area where the latest more recent break of the downtrend meets the next rising trend line as shown by the solid and dotted blue lines, respectively. It's very interesting to note, to date, it looks like the 38.2% fib retracement might hold, but we will need to check whether price sticks to the dotted blue line and volume continues to rise.
To get the full picture on LTCUSD, we also need to assess LTCBTC chart which looks to be holding firm on a weekly chart which gives me further confidence that we could see some near-term upside in LTCUSD. I think the resistance, depending on buying volume, will manifest around the $282 area and then $300-$304 where the latter is more of a psychological barrier.
Purely on a market capitalization basis, if LTCUSD starts falling anymore there could be significant damage and repercussions to its marketable. Note LTCUSD may have well been the victim of its own meteoric rise in early November from $58 to over $400 due to the fact that the mainstream media not only picked up on its rise but also its fall. As a result, potentially scaring away some buyers in the interim.
Do I wish I was cash then rebought? Of course, but were are here now and need to assess the next steps in Litecoin's trajectory.
On the 4 hour chart it looks like we are pivotal area where the latest more recent break of the downtrend meets the next rising trend line as shown by the solid and dotted blue lines, respectively. It's very interesting to note, to date, it looks like the 38.2% fib retracement might hold, but we will need to check whether price sticks to the dotted blue line and volume continues to rise.
To get the full picture on LTCUSD, we also need to assess LTCBTC chart which looks to be holding firm on a weekly chart which gives me further confidence that we could see some near-term upside in LTCUSD. I think the resistance, depending on buying volume, will manifest around the $282 area and then $300-$304 where the latter is more of a psychological barrier.
Purely on a market capitalization basis, if LTCUSD starts falling anymore there could be significant damage and repercussions to its marketable. Note LTCUSD may have well been the victim of its own meteoric rise in early November from $58 to over $400 due to the fact that the mainstream media not only picked up on its rise but also its fall. As a result, potentially scaring away some buyers in the interim.
Kommentar:
In the next couple of days, we should know whether LTCUSD has successfully bucked the downtrend. Charlie Lee said today that his focus is on the number of transactions LTC executes on a daily basis and the overall viability of the coin as a usable token. According to his charts and the volume between LTC and other coins such as LTCBCH and LTCBTC, just check out the Bithumb volume between LTCBCH and you can see that the volumne on LTC is 1/3 of XRP but only 1/12 of its size. Maybe there is a case that LTC is grossly undervalued just based on transaction volume alone, but I am not saying that and it would only be a small piece of the equation.