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Litecoin looks unstoppable! The bullish herd mentality has pushed the price to a fresh 10-month high of $6.453 on strong trading volume. And there are no technical signals which indicate that the frenzy is about to lose steam. In fact, the market participants have started accumulating Litecoin on even the slightest dip.
Litecoin has added 18% in gains since yesterday to currently trade at $6.153.
Image: https://www.tradingview.com/x/7OaMN3Wf/
The 240-minute LTC-USD price chart looks sturdy and poised for more gains. But since the cryptocurrency has already rallied significantly in such a short time, I remain skeptical of its future returns.
Litecoin Chart Structure – A look at the above chart confirms that bulls are stomping on the bears at every opportunity. Litecoin took out its previous high of $5.645 on strong volume and continues to trade near the highs.
Moving Average Convergence Divergence – The Histogram value continues to flirt with the 0 level as MACD yet again crosses the Signal Line, this time on the upside. At the time of writing this analysis, MACD has a value of 0.4592, Signal Line has a value of 0.3691 while the Histogram has a value of 0.0901.
Momentum – The Momentum indicator witnessed another wild swing in the reading. From yesterday’s dismal reading of -0.0601, the value jumped drastically to hit 1.3869 before easing down to 0.9115.
Relative Strength Index – The 14-4h RSI value signifies that Litecoin is overbought at current levels. The latest underlying strength reading is 71.4071.
Conclusion
There doesn’t seem to be anything that is deterring the bulls at the moment. The cryptocurrency has posted phenomenal gains in such a short span of time, without any fundamental backing, and that is what is increasing the risks of the trade. Litecoin is a total momentum play and those who wish to ride this momentum-based rally may buy on dips with strict losses in place. I wouldn’t want to ride this rally.
TicoSonny 
Nikhil 
ARUN VINUD 
You’ve been down on litecoin this entire upswing. Someone knows something. Maybe coinbase is going to list litecoin. Or something else. But litecoin won’t stop going up and up. Probably hit $50 and you’ll be preaching to sell short.
Hi Tico,
I hope it hits $150 for your sake, but I don’t buy anything and everything that goes up without any fundamental backing.
Wow. Thanks for the reply!! I’ve been reading all your articles. I’m not saying your analysis is wrong. I’m just saying that “insider” trading is more than allowed and for litecoin to jump 400% this fast I really feel like someone somewhere knows something really positive that’s about to come with litecoin.
I read his articles too and its completely based on the charts and he is right in his own way.The litecoin gains are because of the halving which is going to take place on 25th august and also because of the recent Chinese stock market crash.The problem with crypto is there are too many bagholders who bought these coins for 0.01$ and so during initial release and they control the market as of now and only time can reduce their effects as more coins come to circulation and in my opinion all alts except btc are just pump and dump junks.Coinbase adopting litecoin is out of equation as I know coblee and chat with him and he told its not gonna happen anytime soon.My prediction for ltc in short term is to short at 10$ which it will go for sure and wait for a small dump to 8.5$ or so buy back and sell close to halving and wait for a classic dump to 1.8$.I may be wrong but my predictions are based on the bagholders whom I know hope its right .2013 was a bubble and 50$ for ltc is insane and never gonna happen anytime soon imho.Happy trading 🙂
Hi Arun,
Thank you for taking the time out to share your thoughts.
I believe that the market is speculating that since the Bitcoin network is not error-proof (re: the recent attack), why not just switch to Bitcoin for the time being. But ultimately, the future of cryptocurrencies except BTC is still bleak. Hope is the word for them.
Hi Tico,
What you are saying is probably right! Maybe we are not being told something which could add immense value to Litecoin. Or maybe it is just some speculators with deep pockets looking to make good money.
Thank you for sharing your opinion! Much appreciated.