Litecoin has been able to pare some of yesterday’s losses, following Bitcoin price’s bounce back to the $57,000 mark. Litecoin is loosely correlated with Bitcoin prices, and this seems to explain the losses of April 7 and the subsequent gains in the LTC/USD pair.
Litecoin is presently posting gains of nearly 2% on the day after it shed some of the gains garnered earlier in the day. However, analysts expect Litecoin to add to today’s gains, as there is a fundamental backing to the breakout direction of this Bitcoin clone. Asset management firm Coinshares announced two days ago that it was launching a Litecoin exchange-traded product (LTP) which was to be physically backed, on the Swiss SIX Exchange.
The Litecoin LTP is to be listed on the basis of a physical backing of 0.2 LTC for every unit of the Litecoin LTP. This would be the third crypto-based product to be launched by Coinshares this year, as it had earlier launched similar products for Bitcoin and Ethereum. Presently, the price picture on the daily chart for Litecoin (LTC/USD) favours a push towards the upside, in the direction of the initial trend that preceded the triangle pattern.
Technical Outlook for Litecoin
Litecoin’s break of the symmetrical triangle on the daily chart of the LTC/USD pair met with rejection around the 240 price level (100% Fibonacci extension from the swing low of 25 November to the swing high of 10 January. With the recovery in Bitcoin prices, Litecoin has bounced off the triangle’s upper edge and is mounting a renewed challenge on the 228.55 resistance.
If this level is successfully uncapped, the door could be open for the price to push towards new highs, with 227.31 appearing to be a likely upside candidate.
On the other hand, a rejection at 228.55 would mark a progressively lower high from the high of April 6. This could enable sellers to mount a new challenge on the triangle’s upper border and the 209.13 support level. A successful breakdown of 209.13 opens the door towards 200.60, with 186.82 standing as the only barrier between this scenario and the triangle’s lower edge.
Litecoin (LTC/USD Daily Chart