Litecoin Testing Support - Is it time to buy?
Litecoin had been outperforming most cryptos for a couple months. After it's nice little run we got some backing and filling as expected and now find price at a key support level.
Foundation of the next move or something worse?
With Bitcoin pushing higher today it's easy to get optimistic about litecoin moving too. However, lets look at the chart within this post to see exactly what is going on so we can make informed decisions.
Support offering a good risk-reward
As you can see price is sitting right at the 75 area support level. This was a key support level that held a few times before the sell off late last year.
Now that price surmounted it and has sold back down it will be the key level for us once again.
Basically a close below 73 would be a bearish indicator, but this also gives us a nearby number to work with.
If price is to rally then we are looking at the most prior top, around 93 as our upside target, while 73 is only a couple point to the downside from the current price of 75.
I like those odds from a risk-reward scenario. And only from that scenario as we haven't gotten any reversal candles or patterns.
Either way LTC needs to hold this level otherwise things could get ugly fast as price doesn't have any real support levels until down in the 60s.
Frankly, I'd be okay with the price dropping. Means I can afford more. The trick is for it to go back up again...
The halvening is coming soon so should provide good support here as it was the previous resistance level. Once bitcoin stabilizes (I hope it does), altcoins like LTC will have runs to continue to lead the market forward.
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I think it is time to buy. Thank you for this valuable post
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Good analysis!
Unfortunately it is looking like it's breaking down with today's selling pressure :-(