Litecoin Recovers as Bulls Defend the $42 Demand Zone
Dec 31, 2019 at 10:38 //
News
Litecoin made a bold move as it traded into the range of between $42 and $50. In the previous week, the bulls impressively reached a high of $44 but were resisted. The coin retraced and found support at $42. Incidentally, the coin has come back to its original range to resume fluctuation. It is expected that the demand zone at $42 will hold, if it does, Litecoin will reach the high of $50 and break it.
More so, the coin will continue ahead into the previous highs if the current bullish movement is sustained. Regrettably, it will be a set back if the coin slides below $42 due to another round of selling pressure. Hopefully, the price is fluctuating above the current support in readiness for an upward move.
Litecoin Indicator Analysis
The bulls successfully broke above the 12-day EMA but were resisted by the 26-day EMA. The price may break the 26-day EMA and reach the bullish trend zone. At present, Litecoin is above 80% of the daily stochastic range. This signifies that the price is in a strong bullish momentum. The pair is expected to reach the $50 and $60 price levels if the current momentum is sustained.
Key Supply Zones: $80, $100, $120
Key Demand Zones: $50, $40, $20
What Is the Next Move for Litecoin?
Litecoin has impressively moved up from the bottom of the chart. With a sustained bullish momentum, the pair is expected to continue its bullish move, though it may be hampered at the $50 price level. Traders are to look out for a buy setup to initiate long trades with the understanding that the $42 support level holds. A stop-loss order should be placed below $39.
Disclaimer. This analysis and forecast are the personal opinions of the author are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @coinidol.com By Coin Idol, @Khareem Sudlow
