- Litecoin buyers must strongly defend the $50 support and strive to pullback to $58 and $60 respectively.
- “We expect LTC to continue to substantially underperform the crypto market,” Tushar Jain.
Litecoin traded around $360 in January this year. The digital asset has shed approximately 85.5% of its value since the all-time high. Litecoin has butchered its way through support levels to the extent of trading lows in November 2017. LTC/USD has also suffered under the selloff that has dominated the market this September.
The crypto descended below $50 testing the support at $47 before the buyers put a stop to the selling activities on Wednesday last week. The recovery that began mid-week continued into the weekend where Litecoin changed hands above $58.00. The trading on Monday started the week with bear corrections. A break of the trendline support triggered an extended selloff towards $50 but formed a low at $50.49 on Tuesday.
At the time of press, the buyers have battled for a pullback and currently testing the immediate resistance zone at $52.00. Further up, the 23.6% Fib retracement level with the previous swing high of $58.78 and a swing low of $47.27 will limit gains towards the upper supply zone at $58.00.
Litecoin needs to find a support above $52.00 in the near term and forge a path towards the intraday ultimate resistance at $58 and eventually a break above $60. On the downside, the support at $50 is to be defended by all means to keep away from another dip to $47 (current primary support).
In other news, a managing partner at MultiCoin Capital Management, Tushar Jain published a blog post titled “Debunking Market Narratives: Litecoin ($LTC) Edition.” In the article Jain said that the majority of the narratives that have been used in the defense of Litecoin are incorrect. Interestingly, he referred to the digital asset as being “significantly overvalued” despite the fact that LTC has declined from traded roughly at $360 to $51 at the time of writing. Jain had a lot to say while dissecting through Litecoin’s achievements and challenges but he concludes the article by saying:
“Litecoin has traded within a range of $41 and $358 over the past 52 weeks. Hovering at approximately $50, we believe LTC is significantly overvalued. Given the lack of a viable investment thesis, nonexistent positive catalysts, and strong negative catalysts, we expect LTC to continue to substantially underperform the crypto market.”
LTC/USD 1-hour chart