Breakout or Breakdown: The Outlook for Litecoin
I think it will breakout. A breakdown is almost equally likely though.
Litecoin currently trades at $145.96 (04/19/2018) with its all time high of $356 being achieved on 12/17/2017.
All data in answer sourced from onchainfx.
I expect it to trade higher than its current price because it appears to be bouncing off a bottom currently.
This also appeared to be the case though when it bounced off the Feb 6 low of $124 back to an interim high of $241 on February 20 after which it subsequently continued the longer term downtrend to an eventual low of $114 on April 10.
If the breakout continues it should rally past $241.
Exceeding its all time high of $356 near term would require a parabolic rise. Which doesn’t appear to be in the cards for any large cap coin in the crypto markets under current circumstances. So I think it is unlikely it surpasses this level.
If it does not rally past $241. I would expect the next low to be under the $114 from the last downtrend.
I’m 60/40 breakout versus breakdown because of the following reasons:
- Reduced selling pressure now that tax season has passed.
- Continued build out of the lightning network leading to increased usage lending support to prices going forward.
- Additional demand from partnerships with payment platforms like TenX and Korbit
In which case I’d expect the recent rally to dissipate and a breakdown of price past the $114 mark.
Thanks for Reading
Join the MPower365 newsletter to stay up to date on my latest research into cryptoasset investments!
Questions, suggestions for improvements. Please reach out.