- Litecoin price prints green numbers during the European trading session.
- LTC price could be set for a breakout trade which could be positive for bulls.
- Overall sentiment remains bearish, however, in the long term towards December.
Litecoin (LTC) price is set to jump higher this week as markets see bulls storming out of the gate this Monday morning. After a very volatile two weeks where the world seemed to be on fire again and the apocalypse was near, it was time for decompression, providing traders with opportunities to recoup some of their incurred losses. Expect to see some modest gains this week, but it must be underlined that the overall downtrend is still very much at play, with $40 as the price target to the downside.
LTC price set to provide small gains within overall downtrend
Litecoin price is set to print some gains for this week as last week's overblown tail risks steadily deflate. The analogy of the markets being an elastic band is apt in this case: after getting stretched last week it is time for some detention. On the back of that, expect some dollar weakness, hand in hand with higher equities, and cryptocurrencies in a sweet spot.
LTC price will see bulls brushing against the red descending trend line either today or Tuesday on the back of markets looking for a silver lining. Once that trend line breaks, a quick and sharp rally higher will probably follow, with bulls jumping to get in. The price target set forth is $57 with the 55-day Simple Moving Average and the monthly pivot as a double plateau at which to stop and take profit before support fades towards the end of the week.
LTC/USD Daily chart
The risk is that there could be a technical rejection at the red descending trend line. This might happen on the back of something eventful happening in the markets with, for example, a central bank intervention or some more escalation of violence in the region between Ukraine and Russia. A quick drop to $50 would happen with some follow-through towards $46.50 and the monthly S1. As the Relative Strength Index is still trading below 50, the oversold area will quickly be reached in case of another downturn, probably limiting further deterioration.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
Bitcoin likely to remain in red through the next quarter if history is any indication
Bitcoin (BTC) price produced a monthly close at $27,210, noting a -6.92% return for May. The last-minute slide in BTC put an end to the four-month bullish streak that kickstarted the 2023 rally.
Ethereum vs. SEC: Implications of Wahis’ insider trading settlement on ETH
Ethereum (ETH) is the subject of a new controversy, with the second-largest crypto finding itself in the rut after the United States Securities and Exchange Commission (SEC) settled its insider trading case against the Wahi brothers.
Justin Sun’s TRON hits all-time high of 10.9M daily transactions, braving crypto winter
Justin Sun, the founder of TRON – one of the largest decentralized blockchain DAO ecosystems in crypto – shared a new milestone for the token on Thursday. TRON processed 10.9 million in daily transactions, hitting a record high.
Ethereum fees decline by 70% from 2023 highs as top DeFi protocols lose users
Ethereum is currently facing trouble in the spot market due to the broader market bearishness as well as investors' skepticism. But while the spot market only recently took a turn for the worse, the DeFi space has been only negative for a long time.
Bitcoin: BTC delays inevitable crash to $25,000
Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.