Litecoin Price Analysis: LTC Likely to Correct Before Rallying to $90

Litecoin Price Analysis: LTC Likely to Correct Before Rallying to $90

 

Latest Litecoin News

There is something special about the Lightning Network. Firstly, it is the nearest solution the Bitcoin and Litecoin network has ever had to scale. Secondly, it has the support of heavyweights. Jack Dorsey of Twitter and Square Inc and Charlie Lee of Litecoin are just but a few.

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In a short-time while in beta, the off-chain, layer-2 but secure network continues to register double-digit expansion in the number of nodes and network capacity. It is large and reliable enough that there are the platform that process funds for mainstream, mortar and block stores to accept BTC. Others as Tippin.me allow Twitter users to “tip” others for quality content.

But, there is something else about Lightning that has been critiqued for good reasons. LN is only functional when both parties are online and once funds are exhausted, then the channel closes and settles on the main chain. Theirs is a development that states one side of the equation in Lightning Loop. The solution is in Alpha and it “allows users to securely move funds in and out of the Lightning Network using non-custodial Bitcoin contracts.”

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Through a feature, Loop Out, “transactions are limited to a maximum of 0.01 BTC” but allows users to deposit and withdraw funds from channels without closing them enabling “users, businesses, and routing node operators to keep Lightning channels open indefinitely, making the network more efficient, more stable, and cheaper to use.”

LTC/USD Price Analysis

Up 4.6 percent in the last week, Litecoin (LTC) is the second-best performer in the space after Bitcoin Cash. However, as rosy as our price charts looks, Litecoin is heating up and rightfully cooling off after two weeks of stellar performance.

From the chart, it is clear that the fifth most capitalized coin is trading within a bullish breakout pattern and as it dictates, every surge must be corrected and that is what is happening as I write this. In this case, the accelerant is a weak BTC and contributing technical factors plus liquidation at $60.

Notice that we have a bearish divergence not only as shown by the BB but also from a combination of increasing prices but decreasing volumes meaning a correction to $50 is on the cards despite a long lower wick hinting of bulls after yesterday’s close.

Moving on, risk-off traders should exit their positions and wait for better entries when prices dip to $50–$55 zone—the breakout and our support level. If not and there today close as a strong bull above $60, Litecoin could rally towards $90 and later $110.

All Charts Courtesy of Trading View—BitFinex

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.