Litecoin Price Forecast: Choppy Session Continues, Brace for a Breakout!
Arslan Butt•Thursday, April 8, 2021•2 min read
The
LTC/USD closed at 218.974 after placing a high of 242.829 and a low of 211.00. After rising for eight consecutive days, LTC/USD dropped sharply on Wednesday, following the bearish market trend for the day driven by
BITCOIN. Litecoin dropped on Wednesday by 10.0%, which was its largest single-day percentage decline since February 23rd. The downward momentum pushed the market cap of Litecoin down to $14.607B.
The
silver digital coin plunged sharply on Wednesday despite good news a day earlier that it will soon see an institutional listing in the form of an exchange-traded product (ETP) in Switzerland. The firm’s investment product currently provides exposure to
Bitcoin and
ETHEREUM, and soon Litecoin will also be available to eligible institutional and individual investors throughout Europe.
After this news, Litecoin climbed more than 10% on Tuesday as investors gained confidence in it. However, these gains only lived for a day and reversed the next day amid the downward pressure caused by Bitcoin. Bitcoin investors started closing their long positions to give further room for a new all-time high level as the bullish potential of Bitcoin was strong. The recent decline in Bitcoin could not be said as a correction; rather, it was done to provide space for further upside for prices to reach above $60,000. This type of move from traders dragged other altcoins in the market lower, including Litecoin.
Furthermore, the US dollar was also strong in the market on Wednesday amid the release of March meeting’s minutes by FOMC which revealed that the Fed will keep the policy accommodative until employment and inflation recovery fully and will not change the policy only because of good forecasts about the country’s economy. The US Dollar Index also rose above 92.3 level and added to further losses in LTC/USD.
Daily Technical Levels
Support Resistance
213.057 230.852
207.125 242.715
195.262 248.647
Pivot Point: 224.920The
LTC/USD pair trades with a bearish bias at 226.25 level as the pair has entered the overbought zone. For now, Litecoin is likely to drop until the 218 level that marks 50% Fibonacci retracement. On the lower side, violation of 218 level can extend selling trend until 211 level. The
RSI and MACD are still holding in a buying trend, while the 20 and 50 periods EMA support a selling bias. Let’s consider taking a sell trade below 231 level today. Good luck!
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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