LTC/USD Forecast: Litecoin Shows Signs of Support
Date
2/28/2022 4:24:42 AM
(MENAFN- Daily Forex) Litecoin has dropped just a bit during the trading session on Friday to reach down towards the $100 level, but at this point in time it looks as if it is going to continue to find interest in this region. The $100 level continues to be a large, round, psychologically significant figure that a lot of people will be paying close attention to, and therefore it is a natural place to see buyers come back in.
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All of that being said, the market is likely to see headwinds still, simply due to the fact that the $130 level above will be a massive resistance barrier. Furthermore, we also have the 50 day EMA reaching down through that level, and as a result I think it is probably a market that is going to give you a bounce that you can sell into. After all, as money runs away from the far reaches of the risk spectrum, it is hard to imagine that Litecoin suddenly takes off to the upside. Do not get me wrong, I like Litecoin to be honest, but this is not exactly the first place that you go looking to put money to work.
The hammer from the Thursday session is important, so if we were to break down below that level is likely that Litecoin will go much lower, with at least a move to the $80 level in the cards. This is especially true considering that the market has been in a downtrend for quite some time. In fact, it is not until we break above the 50 day EMA that I think you could start to talk about a potential reversal in the trend, but you would also need to see other large coins such as Bitcoin or even Ethereum rally in order for Litecoin to get its traction back.
I think at this point you simply wait for rallies to sell, because the trend is based upon monetary policy more than anything else. Monetary policy and the Federal Reserve is not looking to change anytime soon, despite the fact that some believe that they will have to be a bit more cautious about raising interest rates now that there is a kinetic war in Ukraine. That being said, Federal Reserve speakers are going to be paid close attention to between now and the meeting later in the month of March, and therefore you need to be very cautious, but I do think that more likely than not we continue to see negativity.
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