LTCUSD price saw a brief test below the Ichimoku cloud beginning of the week. However, it has since been struggling to break below it.
On the Ichimoku Kinko Hyo‘s daily setup, the Kijun line has already crossed below the Tenkan line. This is yet another medium-term bearish signal, which could drive the LTCUSD Price towards our key pivot and support levels.
LTCUSD Price Analysis
The supporting pivot level falls on the 50% Fibonacci retracement level $50. This Fibonacci retracement which retraces Litecoin’s long uptrend between April to September in 2017.
After reaching the all-time high level of 98.18, LTC/USD dipped down to 33.68 in the matter of two weeks in September. With the recent developments on the Ichimoku cloud on the daily setup, we could expect another visit of the key support level of 50 in the coming months.
A confirmation of a break below the Ichimoku cloud could even open doors to further drops towards the 61% and 78% Fibonacci levels in a long run. These support levels are set at $40 and $24 respectively.
Litecoin Price Versus Bitcoin
Litecoin’s price has also weakened against other currencies including EUR and Bitcoin. Versus BTC, LTC has broken below the key support level of 0.010 for the first time since May. LTC/BTC tried breaking below this level twice since then, however, it failed. Each time, it bounced back up to the all-time-high zone, just to pull back to the 0.010 support again. This support also falls on the 61% Fibonacci level, making it that more important.
With the prevailing Ichimoku cloud getting thicker and more bearish, the break of this support could be indicating further potential drops towards the 78% Fibonacci retracement level of 0.0070.
WHAT IS LITECOIN?
Litecoin is a peer-to-peer Internet currency that enables instant, near-zero cost payments to anyone in the world. Litecoin is an open source, global payment network that is fully decentralized without any central authorities. Mathematics secures the network and empowers individuals to control their own finances. Litecoin features faster transaction confirmation times and improved storage efficiency than the leading math-based currency. With substantial industry support, trade volume and liquidity, Litecoin is a proven medium of commerce complementary to Bitcoin.
Litecoin Vs. Bitcoin
Created in 2011 as a lightweight alternative to Bitcoin, it has two key differences:
– Litecoin’s smaller time intervals between adding new blocks to its Blockchain, which is supposed to decrease transaction times
– Litecoin’s mining is governed by the Scrypt algorithm, as opposed to Bitcoin’s SHA 256.
The purpose of this is to restrict ASIC miners and allow users to efficiently mine Litecoin on regular PC’s,
Since its creation, Litecoin has been very popular, with an almost constant presence in the top 5 of cryptocurrencies by market capitalization (albeit never beating Bitcoin in that regard).