Previous analysis about LITECOIN
We had previously anticipated LITECOIN outperforming BITCOIN and called a bottom when the price ratio was at 0.011 with a price target of 0.20:
We also called the break above $50 that took LITECOIN price to $95, almost a doubling in price:
LITECOIN not so strong in fact
Later on we realized that LITECOIN is not such a strong performer as its weakness against MONERO was spotted:
It now happens that LITECOIN appears to have turned lower for the worst.
This is now obvious when comparing LITECOIN with BITCOIN, whereas our previous target of 0.02 was approached but not reached since it moved up from 0.011 to 0.019 (still an amazing performance of +70%) and reversed dramatically to the downside from this level. We should now expect the price ratio to move lower again towards the lower boundary of the wedge pattern.
As a reminder a similar downtrend is in progress when comparing the price ratio between LITECOIN and MONERO. If this scenario becomes realized it would mean that LITECOIN will dramatically underperform MONERO since the ratio should be more than halved.
LITECOIN heading back to $30
This is our scenario that LITECOIN is probably heading for $30 again for various technical reasons.
First it has broken below its long term rising trend after breaking heavily below a previous shorter term support.
Second it has made a double top below the $60 level that now appears to be a very strong cap above the price.
Third, the broken long term trend line has now turned resistance and the price is hitting its head against that ceiling.
Fourth, the volatility is elevated and the momentum is bearish as seen on the MACD and the downtrending 7-period moving average.
All of this should draw the price lower into the $30 area for the least.
No strategy is offered regarding LITECOIN else than to avoid buying into this cryptocurrency until the possibility for a bounce begins to emerge or the price moves back above the $60 level.