What’s triggering the Litecoin: LTC/USD (LTC=) price rally?

What’s triggering the Litecoin: LTC/USD (LTC=) price rally?

$LTC #Litecoin #Crypto #Cryptocurrencies #FX #Trading #Markets

Litecoin
Ticker: LTC=
Price: $128.64

Litecoin Outlook

There are three major factors behind the Litecoin price rally: ideal technical structure, Bitcoin’s rally, decent fundamentals.

Shayne Heffernan, Founder of HEFFX and Knightsbridge Live, pinpointed the LTCBTC pair’s momentum. Most altcoins, including Ethereum, have stagnated against BTC.

Hence, Litecoin showing some strength on the LTCBTC pair is noteworthy. He said:

“LTC on the $LTCBTC pair looks loose and ready to run. On $LTCUSD, we are completing a huge weekly Adam and Eve double bottom pattern with a neckline @ $146.”

Atop the favorable market structure of Litecoin, the Bitcoin price has been increasing rapidly. This has caused the overall confidence in the market to increase.

Philip Swift, the creator of LookintoBitcoin.com, said there were some sellers on Coinbase but there has been lots of on-chain activity.

The continuous increase in the on-chain activity of Bitcoin has led the price of BTC to surpass the previous all-time high.

On December 27, Bitcoin rose to as high as $27,632 across major exchanges, achieving a new all-time high. The analyst noted:

“BTC price action looks strong here. Few sellers on Coinbase in the short term shown here by the lack of asks (yellow lines) above price. In terms of on-chain activity… Advanced NVT (blue line) has actually pulled back from the overbought (red zone) as price went sideways/up. This indicates LOADS of on-chain activity over the past week or so, and suggests more potential for upside in short term.”

Some argue that the rising price of Bitcoin is bad for altcoins, as BTC sucks out the volume from the market. However, Litecoin has been one of the only altcoins that have been increasing in value against BTC.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 91.03.

The projected upper bound is: 145.96.

The projected lower bound is: 112.64.

The projected closing price is: 129.30.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 83.3973. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 7 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 73.15. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 5 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 12 period(s) ago.

Rex Takasugi – TD Profile

FOREX LTC= closed down -3.180 at 127.970. Volume was 28% below average (neutral) and Bollinger Bands were 229% wider than normal.

Open      High       Low       Close        Volume
131.180   132.420    123.490   127.970      166,377
Technical Outlook
Short Term:        Overbought
Intermediate Term: Bullish
Long Term:         Bullish
Moving Averages: 10-period     50-period        200-period
Close:           115.38        85.49            59.04
Volatility:      99            126              89
Volume:          351,119       290,069          198,457

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX LTC= is currently 116.8% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of LTC= at a relatively equal pace (neutral).

Our trend forecasting oscillators are currently bullish on LTC= and have had this outlook for the last 11 periods. Our momentum oscillator is currently indicating that LTC= is currently in an overbought condition.

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