Litecoin Likely to Resume the Bullish Trend if the 100 SMA Holds. If Not, We’re Buying Lower
Will the 100 SMA turn into support for Litecoin now that buyers have pushed above it?
Litecoin lost around $300 during the crash in May, or more than 70% of its value. The price fell to $120 by May 23, but the decline in the cryptocurrency market stalled, and since then Litecoin has been trading sideways within in a range.
However, the highs have been getting lower for Litecoin during this time, despite the consolidation, which shows that Litecoin is not out of the woods yet. But buyers have managed to push above the 100 SMA (green) on the H4 chart, which has been acting as resistance lately.
That was an encouraging move by the buyers, but the move came from Bitcoin, which has climbed higher in the last several days, following Elon Musk’s comments that Tesla Motors would accept Bitcoin as tender again, if it solves the environmental issues.
This might have been more of a bow-down to the elites, who are pushing for renewable energy, but it helped BITCOIN, which pulled the rest of the crypto market up with it. So, LITECOIN managed to move above the 100 SMA, but it is retreating lower today.
But the 100 SMA might turn into support now. It would be great if it did, since that would indicate that the lows have gotten higher now, turning the pressure to the upside. But, it remains to be seen whether the 100 SMA will hold. Anyway, if it doesn’t, we will try to buy Litecoin lower again, after closing our long-term Litecoin signal here yesterday.
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