Litecoin and the major cryptocurrencies are gaining this Monday as the Coronavirus contagion swept through the conventional asset classes. Lately, cryptocurrencies such as Litecoin (LTCUSD) and Bitcoin have experienced a sort of renaissance as alternative investments in the presence of market upheaval, and today’s trade scenarios do not look any different. The market dominance of Bitcoin dropped to 65%, showcasing the performance of Litecoin and several other altcoins such as Bitcoin Cash, EOS and Ripple, which are all trading higher against the US Dollar.
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Technical Outlook for LTCUSD
Litecoin is up on the day at 59.17, having bounced from the 52.47 support price yesterday. The active price candle of Litecoin is starting to emerge from the descending channel. However, LTCUSD has to contend with resistance at current price levels, formed by previous highs at 9 Oct and 17 Nov 2019, with a cluster of candle highs in between that traded close to that level.
A break above the current levels allows Litecoin to aim for 63.49, where previous lows of 29-31 August 2019 as well as earlier highs of 26 Oct and 11 Nov 2019 exist. A 3% penetration close by the daily candle above the current resistance would help LTCUSD achieve these price targets.
Conversely, failure of LTCUSD to sustain the upside momentum could bring the downside targets at 52.47 and 47.97 into focus. The channel’s lower border interacts with 47.97 (previous lows of 23 Oct and 21 Nov 2019). A downside break of the channel’s lower edge brings 42.94 into focus, with possible extension to 40.21 if crypto market sentiments turn bearish once more.
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