The Litecoin price over the past seven days has demonstrated strong momentum for a recovery. Within the mentioned trading period, LTC/USD has closed on the daily within the green five out of those seven sessions. This comes after some selling pressure hit the market last Monday, 29th October, resulting in some key near-term support levels being breached.
Strong Cryptocurrency Optimism from Litecoin Creator
Charlie Lee, the creator of Litecoin, was recently invited to speak on the latest episode of Unconfirmed with Laura Shin. Lee started on speaking about where he believes the market is currently, in terms of its use and acknowledgement with people and what could happen to fiat money.
He said, “It just feels like we’re still in the beginning. We have yet to scratch the surface on how far Bitcoin can go – or cryptocurrency in general. I think the angle is to become money that everyone will use on a daily basis, and I think it will replace fiat as money that everyone will use. So right now – Bitcoin, cryptocurrency – it’s still just a speculative asset.”
Charlie is confident that mass adoption will come, however it is still in very early days. Noting, “It hasn’t really reached much adoption in terms of people using it. We’ve definitely gone far – there’s work on second-layer solutions, more scaling, more privacy, and I’m happy to see how much we’ve done in the past 10 years, but there’s definitely a lot of work ahead of us.”
Technical Review – LTC/USD Daily Chart View
LTC/USD via the daily time frame has seen a bullish development of late. The price managed to push back into the pennant pattern, but also breakout to the upside. It had failed to do so initially, through September and October, as price action was firmly contained within. It took a breach south on 29th October, out from the pattern structure, to then wake up the bulls.
The price fell deep within a demand zone, down to the $48 territory, before seeing decent buying swoop back into the Litecoin market. At the time of the drop, LTC/USD was stuck within a trend lower, it had been running at a seven-session losing streak. The buying started to pick up on 30th October to see the price push most recently firmly above $56. Highest level seen since 16th October.
A big push north the pennant pattern was observed on 4th November, seeing a vital daily close above. This has raised the attraction of further potential buying it come in. Price action is looking to play out to the textbook, given the breakout has been seen, now a pullback is currently underway. The upper trend line of the pennant, is now acting as support, seeing around $53.00.
Upside LTC/USD Targets
Looking to the upside, there isn’t too much in the way of resistance for a reclaim of the $60.00 mark. LTC/USD last traded here on 15th October. Further north, a near-term target would like be the $68-69 region. A supply zone is can be seen here, the price last traded here on 4thSeptember, before seeing large selling swoop in.
To conclude, current indicators would point towards the bull’s favor over the coming days. The key would be for the above-mentioned support to hold. On top of the pennant, as the breakout and retest plays out. A failure to complete this technical move, could see the price quickly back under $50, testing the 29th October lows to the downside.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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