TA of the Day: Litecoin On the Verge of a Breakout?

He is Litecoin/US Dollar About to go upside?

Litecoin (LTC), Layer 1 cryptocurrencyThe country is witnessing a rise in large money movements. According to In the masson $2.85 billion $100 million worth of Litecoin is transferred daily in large amounts (transactions over $100,000). This represents more than half of the total market cap of Litecoin.

This high level of large transactions indicates that people or groups with a lot of money, often called “Whales“In the crypto world, they are very active in buying and selling Litecoin.

Compared to other similar cryptocurrencies, Litecoin (LTC) performs exceptionally well in this area. For example, Dogecoin (DOGE), which is worth about three times the value of Litecoin overall, is only seeing about $590 million In large transactions.

So LTC does 5.7x more transactions than DOGE, but has 1/3rd of DOGE’s market cap?

This data shows that Litecoin is attracting more interest from whales than many of its competitors, even some coins that are generally considered more valuable.

Are you new to the world of cryptocurrencies? Verify School of encryptionThis course will provide you with an accessible introduction to the technology and basic concepts behind Bitcoin and other cryptocurrencies.

Fundamentals support the bullish case for Litecoin, but what about the technical data?

you welcome in Teaching Assistant of the Day (TAOTD)!

Here is the 4-hour chart:

Technical analysis of LTC/USD on 4-hour chart

Using the technical analysis concepts we covered in our Forex course, let’s analyze the LTC/USD pair.

MA bar (10, 50, 100, 200):

• 10 simple moving average:Centered around 67.51. The price is above this level, indicating short-term bullish momentum. The slope is to the topreinforcing the short-term trend.
• 50 simple moving averageThe price is at 68.93. The price is also above this level, which reinforces the upward trend. The slope is bullish, which supports the continuation of the upward trend.
• 100 simple moving average:It is located at the level of 71.81. The price is slightly below this level, which indicates that it is an immediate resistance level. The slope is downindicating a medium-term consolidation.
• 200 simple moving average:Centered around the 74.00 level. The price is below this level, indicating a long-term bearish momentum. The slope is downindicating a continuation of the long-term downtrend.

If you are new to moving averages and moving average bands, read our Pipsology School lessons on moving averages and moving average bands.

Williams %R (14)

• Williams %RThe current reading is -17.49, indicating that the market is in a Overpriced This indicates that the price may face resistance soon and may be about to pull back.

If you are new to Williams %R, read our Pipsology School lessons on how to use Williams %R.

Key Notes

Price movement:

• UptrendThe price moved higher after a significant decline, showing a series of higher highs and lower lows.
• resistanceThere is a significant resistance at the 72.00 level, which the price has found difficult to break.
• Supports: Near-term support is identified at the 70.00 level, providing a base for price action.

Immediate support and resistance levels:

• SupportsImmediate support is found at around 70.00, which is in line with the recent swing low.
• resistanceImmediate resistance is found at around 72.00, which coincides with the recent high and the 100-period simple moving average.

Market structure, market composition:

• Recent swing highs and lowsThe chart shows the low on July 4 around: 56.76, Followed by a series of high highs and high lows up to the present.
• High LowA significant bullish behavior was observed when the price failed to achieve new levels. low dips On July 7, the price started to make higher lows, indicating a possible exhaustion of selling pressure.
• break the frameThere was a break of the structure above the previous resistance at: 67.00 Around July 10, indicating a continuation of the uptrend that started from the swing low and was confirmed after the higher low was created.

Possible trade scenarios

The following trading scenarios are provided for educational purposes only. Since they do not include full risk management practices, they are not intended to serve as actual trading recommendations, but rather as food for thought to help you generate your own trading idea.

Long bias:

• Point of ConsiderationConsider entering a long position if the price finds support near: 70.00 It shows signs of a bounce, such as a bullish candlestick pattern. In addition, the break above the resistance level at 72.00 With strong volume it may indicate a continuation of the uptrend.
• Point of cancellationConsider stopping loss below the support level at around: 69.00 To manage risks.
• potential targetLook for movement towards: 74.00. If the uptrend continues, look for a rise towards 100.00

Short bias:

• Point of ConsiderationConsider entering a sell position if the price fails to break above the resistance level at 72.00 It shows signs of bearish momentum, such as a strong bearish candlestick pattern or the Williams %R indicator moving out of the overbought zone.
• Point of cancellationConsider stopping loss above the recent high at: 72.50 For risk management. This level is very important as breaking it would invalidate the bearish setup.
• potential targetThe initial target may be the support level around: 70.00If the downward momentum continues, look for further decline towards 68.00 or less.

TAOTD Summary

• directionThe trend appears to be up with a series of higher highs and higher lows, but the current overbought condition suggests a possible pullback.
• Main levelsSupport at 70.00 and resistance at 72.00.
• PaidOverbought conditions indicated by the Williams %R indicator indicate that a pullback in price is possible, but if the price breaks the resistance level, further upside is possible.
• market structure, market compositionThe recent break of the structure and the higher low indicate a bullish shift in sentiment. Monitoring these levels is crucial to determining future price action.
• Moving Average AnalysisUpward slopes on the 10 and 50 SMAs indicate short-term bullish momentum, while downward slopes on the 100 and 200 SMAs indicate a medium to long-term bearish trend.