I’m bringing you all a technical analysis of litecoin. So first, I’d like to apologize for having such optimistic articles in the past as many of you did. I got carried away with all the hype of cryptocurrency. So I’m gonna keep this one very conservative and restrictive but realistic to some extent the market cap of cryptocurrency is still around 450 billion. It’s stabilizing around there.
We have to take this analysis with a grain of salt, um as its it depends highly revolves around a market cap of cryptocurrency in general. Here I’ve drawn the trend line in green, this is the trend line that we would follow on, since the huge sell out in early September due to the Chinese Ben. That’s this trend line we’re perfectly on par with that. What that shows us?
Is that we’ve had we’ve come back to the stabilization, that like quite needed we’re back. We’re back, where we should be all this hype here, all this volatility is no longer an issue and from now on we should be having a good increase. A good steady increase following this trend line in purple, here in pink, here is the support. That’s support I drew, this is my opinion. I drew that support around 120 or as we saw here.
There’s it hit that support, but bounced up and once again. Here it hit that support bounced up here. I didn’t have enough. I’m selling to hit that support, but I’m pretty sure if it would have dropped a little bit more due to any sort of flood it would have bounced back. As you can see here out what surprised me, the most is how the volume is taking off. The volume here is increasing drastically!
I don’t know why, but it’s it was at a decent low before here, for a few days um in the 20. Like the 20 the 21st, to the 30th of January, but now the volumes peak peaking back up. Very good sign litecoin is a coin that needs tremendous volume if it wants to make big moves. It’s just how, it is historically, if you go look back here any time it makes a big move.
It is due to a peak in volume and if it lacks that volume, if it lacks that attention, it’s just not going to move. The RSI um definitely overbought right here and panic buy. Look at this right here, so much panic buying in the past two days right now. I think the RSI is good stabilize around 60, that’s where it should be RSI on. Litecoin is very textbook um material in the sense that whenever the prices is drastically increasing.
As such, as here you have a crazier side, then you’ll have a huge sell-off people EP or people taking their own gains. Taking their profits and then a huge sell-off here this. This sell-off right here is due to this huge increase here and people are taking their profits here, but due to like coins on hype, it did not drop, but it should have easily dropped you. This RSI, if you look back 20/20 hindsight. You can see that the only reason, it didn’t after this huge increasingly reason, why it was able to stabilize around 300 and then even increase even more to 360 390.
I think, it hit the only reason, that is because there was so much hype behind litecoin. This drop right here could have easily happened. Right here it could have easily happened around. Here everyone was selling and yeah, so we’re lucky that went up, but I feel bad for the people that bought up here. Because of some people that bought up here is still holding like corn at 150 so my predictions as for this.
I said, i wanted to be conservative, because con to be conservative is the key for litecoin. Because you have to realize something, you have to realize that. We’re in the cryptocurrency space, we tend to exaggerate to use hyperbolic language, whenever we’re talking about any coin so, for my predictions for litecoin.
I’d have to say, that it’s gonna follow this trend line in the long run. Keyword long run, you have this trend line here, if in the short term it could easily go up to 200. It could do some gains and make some gains currently now in the long run. It’s gonna go back up like when it’s so much potential. Charlie Lee is talking about, he’s just on Twitter, he was mentioning another partnership. Somewhat of an organization called light pal, which is utilizing like coin for merchants.
Whatever he has deals, his partnerships it’s very active coin and once again we have to remember, it’s definitely undervalued the market cap of. Like coin is still around nine billion. I think, that’s nothing compared to the some of the bigger coins like a etherium. Around ninety billion, so definitely huge potential. I wanted to show you all this, just quick technical analysis.
You understand that, like when statistically financially just based off textbook reading. Shows potential and it’s one of the greatest coins in the sense, that behind all this proof, that it is going to do well on the charts. It’s talked about a lot of people are passionate about it and people take great time to read and understand, what like coin is and why it’s good for the future.
When cryptocurrency is implemented like coin is definitely gonna have an important space in the crypto world. There’s just how it is we have to deal with it. The only reason why slow right now is, because crypto markets are not doing well. But i’m betting you right now, that within, when it hits around 160 170 180, a lot of people are gonna hop on the train and the volume is gonna go straight up.
You can see this right now, this crazy upload increase in volume, is literally as high as it was, when it was stabilized in around 260. People are training people or trade trading now, people are panicking, but whenever this the storm calms down. Like when it’s a good hold so, that’s it for today. I hope i didn’t say um too much, like i always do, but thank you so much for watching the article and patient with me.
Being patient with me, as cryptocurrency suffers a little fall back, but it’s nothing to worry about. We had a similar one around here look, like winter up to what about 152 here, they don’t want to Shea back up. But yeah nothing to wear out, we got this great a funnel triangle right here. Lower lows, lower highs bottoms, typical thanks for watching boys, see you my next article! peace!