Please, check out weekly technical analysis of Litecoin (LTC) price prepared by Dmitriy Gurkovskiy, a chief analyst at RoboForex.
In the short term, Litecoin has entered an ascending channel, which can be confirmed by the resistance breakout on H4. The projection channel resistance at $200 was also broken out by the bulls at the very first attempt. This means that, speaking short term, Litecoin may reach the upper projection channel border at $280 through the intermediate resistance at $266, chief analyst at RoboForex Dmitriy Gurkovskiy says.
Keeping above $220 is very important for Litecoin, as this is the level that separates the downside area from the upside. Previous chart data show a double bottom was formed at around $175, after which the price successfully went up. This shows that the short term momentum may be quite strong.
Speaking midterm, Litecoin is reversing after breaking out the channel resistance on D1. After reaching the same target at $280, the price may head towards $307.
Moving Average Convergence Divergence (MACD) is ready to leave the negative territory and give a full buy signal, while bear signals are fading out. Stochastic oscillator is fully positive and issues buy signals, too. Technically, a conservative stop loss may be placed at $140, and an active one, at $175.
As for fundamentals, Litecoin does have some reasons for going up; moreover, those reasons are long term. It has been revealed recently that Charlie Lee, the Litecoin creator, is going to launch two payment services. The first one is known as LitePay and is expected very soon, while LitePal is supposed to be released before the end of the year.
Looking into detail, one may notice that the services announced by Mr Lee could become really powerful. The main task of LitePay will be converting digital coins into USD and vice versa; it will be linked with Visa, which will allow LitePay to become widespread in a very tight period of time, while the fee is going to be very low and is expected at 1% at max. Such a service is nothing else than a very competitive one.
Menwhile, LitePal will be handling far more serious tasks. This service is going to be fully compatible with global payment providers, its main function being handling day to day Litecoin transactions. This will allow its users to use Litecoin for paying for goods and services, and this is going to be the largest Litecoin project ever, being supported by PayPal and Western Union. This is a big step forward.
Disclaimer: Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.