The imminent arrival of a halving FOMO might be responsible for Litecoin experiencing a 6.5 percent gain in 24 hours yesterday, but has corrected back to $134 early trading today, June 13th. The fourth largest cryptocurrency by market capitalization rose to $145 on Bitstamp yesterday, the highest level since May 2018.
More notably, at the current price of $136, LTC is up at around 36% percent from lows below $100 seen just seven days ago. Meanwhile, BTC is up 4 percent on a weekly basis.
Litecoin’s fate has changed today as the cryptocurrency slipped slightly into the red zone while Bitcoin and all major altcoins managed to recover over the last 24 hours. The halving FOMO is causing traders and analysts to examine their charts again for possible areas of resistance and profit taking opportunities.
Litecoin halving vs technical analysis
The Litecoin halving is fast approaching and is just 54 days away and while the possible likelihood of a correction before the deadline then remains high, it is possible that the price could be driven a lot higher on the wave of FOMO currently happening. From the long-term perspective, a long-legged doji followed by a red candle on a daily chart does not look good for Litecoin bulls. This pattern implies that the market is ready for an extended correction from the overbought levels with the first target the psychological $120 area. If price drops below, the sell-off is likely to gain traction with the next focus on $110.00 handle.
If there is a move to the upside, a recovery above $140.00 will allow for an extended bullish movement with the next aim at Wednesday’s high of $144.16. The next upside target is seen at $160.00. This is a major barrier created by 38.2% Fibonacci retracement of $160.00.
Litecoin is up nearly 40 percent from lows below $100 seen just seven days ago. Meanwhile, BTC is up 4 percent on a weekly basis.
With the mining reward halving due on August 8th – a process that could lead to a supply deficit and upwards pressure on prices – LTC is once again leading BTC higher.
LTC has consistently seen higher volumes on days of positive price action compared to days of negative price action. Therefore, the path of least resistance looks to be a continuation upwards.
Noted crypto trader The Crypto Dog noted that LTC could achieve “.02 before all is said and done.”
However, a pullback to the 5-candle MA support, currently located at $122, could be seen before further gains, as the cryptocurrency has rallied 118 percent in the last 6 weeks and the bulls often take a breather following impressive gains.