After peaking at over $99, Litecoin has dropped over 25%. When is the next breakout?
April 25, 2019. AtoZ Markets – The cryptocurrency market has gone bearish again after fast rallies seen across the board in early April. Most of the cryptos in the top 20 have lost significantly. While Bitcoin dropped from $5600 to $5400, Litecoin has dropped from 2019 high of $99.5 to $70.5 making over 25% decline. Nearly 75% of nearly $40 gain in April has been lost to the current dip. However, the current dip looks corrective and a bullish breakout could happen soon.
Since the current Crypto rallies started in December 2018, Litecoin has been among the top gainers. It hit very close to $100 this month from $22 low in December. That is an impressive 348%. If Litecoin could rise this much in just over 4 months, there is a possibility of higher prices before the year ends. One of the reasons some believe LTC has done well this year is the Litecoin halving. With the halving, mining Litecoin is faster and more rewarding. More miners are coming back to this cryptocurrency after most of them had packed up during the bearish phase. Litecoin mining hash rate has been accelerating as well, in the last four months. Furthermore, during this period Litecoin’s 24-hours trading volume hit $2 billion for the first time in many months. This shows that more traders are now interested in trading Litecoin.
With more miners on the network, it is less prone to hacks and with trading volume increasing, LTC price should have another breakout soon. Litecoin co-founder Charlie Lee also announced in January that the LTC team was planning to launch another protocol on the network.
Litecoin technical analysis and important price levels
Litecoin price is dropping to a technical support zone where a big bounce above 100 could happen. In the last update, we identified a bullish impulse wave from $22. Litecoin is moving in a similar way compared to Bitcoin. The chart below, use in the last update, expected a 4th wave dip to $65-70.
Little changes have happened. Price dropped slightly and moved very close to $70 as the chart below shows.
Price is currently being supported at the 66-70 zone as the 4th wave of the bullish impulse wave from $22 ends. A break above the 4th wave falling channel will likely be the start of the 5th wave. Above $80, further rallies toward $120-130 are expected.