17.9 C
Manchester
June 27, 2019
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litecoin recommendation

Trade Recommendation: Litecoin

Our December 11, 2018 Litecoin (LTC/USD) trade recommendation hit both targets. The first target of $26.86 was achieved on December 17 and the second target of $31.25 was hit a few days later on December 20. Those who took on the trade recommendation grew their investments by over 35% in a little over a week.

While Litecoin overshot our target, we were confident that we’ll get another shot when the market pulls back. There was no reason to allow the fear of missing out take over even if Litecoin climbed as high as $41.27 on January 8, 2019. At that point, the market was showing signs of exhaustion. That’s why we stayed patient and waited on the sidelines. Our patience seems to be paying off.

Technical analysis shows that LTC/USD is en route to support of $31.25. This view comes after the market breached range midpoint of $35.60 on January 10. With the market still on a slump, the chances of revisiting the range support are very high.

Nevertheless, it looks like $31.25 will hold. First, this is the first time that the market will test the support. More often than not, first tests get the most bullish reaction because participants are eager to buy the pullback after a strong rally.

Also, the 4H RSI is in oversold territory. Plus, we have the 200 MA on the 4-hour chart crawling around $31.25. These technical indicators tell us that a bounce at that level is very likely.

The strategy is to buy as close to $31.25 as possible. If bulls hold this level, our targets are $35.60 and $40.

The process may take less than a month.

4-Hour Chart of Litecoin/US Dollar on Coinbase





As of this writing, the Litecoin/US Dollar pair is trading at $32.59 on Coinbase.

Summary of Strategy

Buy: As close to $31.25 as possible.

Targets: $35.60 and $40.

Stop: $30.50

 

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

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