- Litecoin price has dipped back into the lower bound of the upward channel.
- The parabolic SAR has flipped from positive to negative.
- The MACD is on the verge of flipping from positive to negative.
- The parabolic SAR shows that market sentiment has reversed form positive to negative.
The Litecoin price reached an intraday high of $340 on Saturday before it crashed down to $245, found support at the 20-day SMA and settled around $270. Let’s take a closer look with technical analysis.
Litecoin Price Drops To The Lower Bound Of TheChannel
Over the last three days, the Litecoin price has dropped back into the upward channel formation and is now touching the lower bound. Due to the recent dip, LTC has flashed two sell signals:
Image: BTC/USD daily chart
On the downside, the closest support wall lies at $250, wherein over 50,000 addresses had purchased 1 million LTC tokens. On the upside, the most formidable resistance lies at $290.
Litecoin Could Explode Like Dogecoin, Says Trader Nicholas Merten
After Dogecoin’s recent explosion, crypto strategist and trader Nicholas Merten shared his views on a crypto asset that could be the next coin to meteorically surge. In a recent video, Merten said that he’s looking at a clear bullish setup in the Litecoin/Bitcoin (LTC/BTC) pair.
According to the data shared by him, LTC/BTC bounced from key support of 0.0035 in March 2015 and March 2017 and ignited massive rallies that showed gains between 500% to 800% in a matter of days.
Merten added that LTC/BTC is already displaying signs of strength after bouncing from historical support around 0.0035, indicating that the pair might repeat history. However, Merten suggested taking profits early at around 0.018, as many investors are already aware of the scenario. From LTC/BTC’s current value, Merten’s trading range represents gains of around 275%.
The trader further highlighted that once LTC/BTC generates significant bullish momentum, the hype would push the pair to his price target.
People are going to speculate, guys. People are going to invest and trade, especially when the excitement is here. It’s true in equity markets, and it’s true in crypto markets as well.
Commenting on the broader crypto market, Merten said that altcoins will continue to perform well in the coming months.
Litecoin Price Is Expected To Reach These Levels
The Litecoin price bulls need to break past the $290 resistance barrier and touch the $300-line.