- Litecoin bulls are focused on breaking short term resistance at $50
- If the price jumps above $50 it would probably reach $55 in the short time period
- The price of Litecoin is correlated with the price of Bitcoin
- Bitcoin is currently trading at $10,250 after defending the $10,000 level again
We can say that the cryptocurrency market has stabilized, there is no big price movement in the last several weeks and according to technical analysis, the neutral trend is still intact. The price of Litecoin (LTC) currently stands around $48 which is still far away from the LTC price predictions for 2020. Litecoin has found strong support around $40 and the technical picture implies that the price may recover to $60 this September.
Fundamental analysis: The fundamentals of this cryptocurrency are steadily improving
A very good team stands behind the Litecoin network, the fundamentals of this cryptocurrency are steadily improving and the current price is close to the current resistance level which stands at $50. If you are looking for virtual currencies with a good return, Litecoin can be a profitable investment option according to estimates.
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Litecoin is a very popular cryptocurrency to monitor since it appears to hold a number of advantages over Bitcoin. Litecoin provides faster transaction confirmations (2.5 minutes on average) and Litecoin’s transaction fees are, on average, considerably lower than that of Bitcoin. It is also important to mention that the price of Litecoin is correlated with the price of Bitcoin and investors in this cryptocurrency should also have Bitcoin on their “watch list”.
Last Friday, Bitcoin weakened below the important $10,000 level for the first time since late July, harming a number of Bitcoin investors who argued that Bitcoin is turning into a safe-haven asset like gold. Bitcoin is currently trading at $10,250 after defending the $10,000 level again. Bulls have already defended this level for a week straight and some analysts believe that BTC may start trading higher in the upcoming days. This is positive news for the price of Litecoin and this month could be very significant for the future price of this cryptocurrency.
Technical analysis: Bulls are focused on breaking short term resistance at $50
The technical picture implies that the price reached the bottom, but is it ready for a rebound? Let’s have a closer look at the chart below.
According to the rules of technical analysis, the main trend of this cryptocurrency is neutral-bullish. The current resistance levels are $50, $60 and $70, $40 represents the current support level.
If the price jumps above $50 it would be a “BUY” signal and we have the open way to $55. Rising above $60 supports the continuation of the bullish trend and the next price target could be located around $70. If the price falls in the upcoming period, every price in a range from $30 – $40 could be a very good opportunity to invest in Litecoin.
Summary
Litecoin has found strong support around $40 and the technical picture implies that the price may recover to $60 this September. If the price jumps above $50 resistance level it would be a “BUY” signal and we have the open way to $55. It is important to mention that the price of Litecoin is correlated with the price of Bitcoin and investors in this cryptocurrency should also have Bitcoin on their “watch list”. Most analysts predict the bright future for this cryptocurrency but investors should have in mind that some other cryptocurrencies could potentially limit the adoption of Litecoin.