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Litecoin (LTC) gone wild: July 6, 2023 analysis

Fri 07 Jul 2023 ▪ 3 min of reading ▪ by Family Trading Partnership
Invest Investissement

Over the past week, Litecoin has risen by more than 30%. The LTC price tested $116, marking a new annual ATH.

Logo Litecoin zoomed by a magnifying glass with a graphic, a bear and a bull.

In our June 9, 2023 Litecoin analysis, we discussed a number of scenarios that could see the light of day. Indeed, Litecoin’s price began a downward movement, drawing the LTC $ price close to $70. Two weeks later, LTC reached $115, leaving behind the psychological $100 threshold.

Bullish continuation?

These latest moves produced an engaging close for both the weekly and monthly candlesticks. From a chartist’s point of view, we can see a cup with a handle. We can also see the formation of a triple bottom. Each of these figures is conducive to a bullish continuation. As far as indicators are concerned, the $LTC price is above its daily moving averages, which are crossing and trending upwards. On the oscillator side, the daily RSI has recently exceeded the 70 zone, demonstrating that Litecoin has been slightly overbought.

LTC/USD daily price chart
LTC/USD daily price chart

Litecoin price scenarios

For a bullish continuation scenario, we can expect a sharp bounce back above the $100 threshold to test the new annual ATH. If the $116 mark is broken, we could be looking at targets around the $150 mark.

In a bearish scenario, we could imagine a return to below $100, which would give us targets for the supports below, such as the one around $70.

The last scenario would be more dull, with consolidation in the form of a range around $100.

LTC/USD daily price chart
LTC/USD daily price chart

Conclusion

A successful gamble for investors who “bet” on Litecoin’s rise as it approaches its third Halving. A continuation is not a scenario to be ruled out, but beware. The LTC price could quickly correct following its latest parabolic rise. It will therefore be important to observe the price’s reaction on the various identifiable levels to confirm or refute the various hypotheses made. Beware of potential “fake outs” and “market squeezes” on each of these situations. And remember that these scenarios are based solely on technical analysis. Cryptocurrency prices may evolve more or less rapidly, depending on other, more fundamental factors.

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Family Trading

Family Trading is a community of proprietary traders active since 2017, offering live sessions, educational content, and support around financial markets including cryptocurrencies, with Elie FT, an investor and passionate trader in the crypto market, by its side.

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