Litecoin Forecast: Forming Basing Pattern
Date
12/27/2021 12:32:52 PM
(MENAFN- Daily Forex) Over the last couple of weeks, Litecoin has been on my radar. We are hanging around the $150 level, an area that has been important multiple times, but we are also forming a bit of a“rounded bottom.” This is when the market is slowly turning upward in a very steady manner. Because of this, I think it is a good time to start looking at a potential range-bound play, as Litecoin does tend to bounce from this area from historical standpoint. Therefore, I think we could make a move towards the $225 level. That is an area that has seen a lot of selling pressure in the past, so it makes a nice little target. When you look at the 50 day EMA and the 200 day EMA, you see that they are relatively flat which is somewhat indicative of a range-bound type of market to begin with.
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Litecoin also has seen adoption pick up a bit, so that should continue to drive up the price of the coin itself. The quick transaction times have a lot of fans, me included. Whether or not we can break above the $225 level is a completely different story, but if we do, then it is very likely that we will go looking towards the $300 level. The $300 level has been a major barrier in the past multiple times, so I do think that if we were to get to that area it would be a bit too much to expect Litecoin to continue taking off.
Looking forward, I believe that as soon as we break above the $165 level, the market will more than likely start to accelerate a bit to the upside, and that is what I will be adding to my position . As far as selling is concerned, if we were to break down below the $138 level, then I think the market could drop rather significantly. That being said, I do not necessarily think that is the most likely of things that happen, but you always have to keep both scenarios in the back of your head. With Bitcoin and Ethereum both strengthening over the last couple of days, that typically will drag others like Litecoin right back up in the air with it. We are starting to see crypto in general get a little bit of a boost, which will be seen here as well.
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