Litecoin Sees Strength on the Indicators, During Trek to Find Bottom - Price Analysis

  • Short term: a quick trade up soon might be good for double digit profits
  • Long term: promising signals for having found a bottom, but no confirmation

With its having, and some recent FUD behind it, Litecoin (LTC) is still searching for a bottom on its LTC/BTC chart after a small season of significant correction of over 60% from regional highs. Some bullish indicators point to the possibility of some small gains soon; but a larger trend change - back skyward - will need buyers to step up to the plate.

We turn first to the daily LTC/BTC pairing, we see some solid performance on the RSI. Price has been arcing up for a while, and some bull divergences are apparent on a couple of the troughs - although this is not all the way consistent.

bull div on daily chart speaks to some upsideLTC chart by TradingView

Quite simply, time will tell if this is the bottom of LTC’s down movement. Volume, as is common with alts these days, is the problem: it’s not there. The last bull divergency obviously didn’t pan out on the daily, and this one might not either. It seems, however, that LTC should at least process to the top of this range - which could bear some short term profits for sharp traders.

1-day MACDLTC chart by TradingView

Looking just at the MACD on the daily, we see a picture of consolidation, as well as a bullish cross yesterday. We’ll need a couple of days to say whether this cross arcs up well or fizzles. At any rate, the moving averages are still some way from the centerline; but the growing strength is consistent.

Coming down to the 4-hour, and on the lookout for that small long trade, we see that there is almost 20% of predictable profit versus BTC on the next cycle up to the downtrend line.

MACD almost ready for a popLTC chart by TradingView

Given the growing RSI strength - diverging here as on the daily - this is fairly likely to pan out. The MACD, however, is not quite ready to sign off on this move up: it looks like one more cycle between the MA and signal line is necessary.

Moving to LTC/USD, we see a similar picture. Price is searching for a bottom after a 50% retrace from regional highs of $140. A large bull divergence between now and mid-June suggests a small pop to somewhere between the 21 and 32 EMAs, at the next resistance up.

Maybe a bit of upside hereLTC chart by TradingView

But again, volume is nowhere present on this chart, especially not for the upside. The consolidation downward in volume does suggest that a breakout may come soon, however.

In all, we see Litecoin’s performance repeated on many altcoin charts. Little volume; consolidation; bottom-finding. Things don’t look bad, and the likelihood of holding here seems high. The breather in the middle of 2019 might be over soon for Litecoin.

The views and opinions expressed here do not reflect those of and do not constitute financial advice. Always do your own research.

Litecoin's SegWit Usage Is Still Far Above That of Bitcoin, Data Shows

Data shows that the percentage of addresses using Segregated Witness (SegWit) on the Litecoin (LTC) network is far superior that the percentage using the technical innovation on the Bitcoin (BTC) network.

Segregated Witness essentially segregates the digital signature - which comprises 65% of the space in a transaction - from the transaction data, to allow block size limits to increase. On the Bitcoin blockchain, block sizes are estimated to be able to reach nearly 4 MB thanks to SegWit, despite the 1 MB limit on the network.

Litecoin, a cryptocurrency often seen as the silver to Bitcoin’s gold, was the first cryptocurrency to activate SegWit on its mainnet. Shortly after Bitcoin activated it as well and quickly surpassed its use, but adoption started slowing down. Blockchair data now shows SegWit usage on the Bitcoin network has been dropping since February of this year, while it has been rising on the Litecoin network.

segwit usage BTC vs LTCSource: Blockchair

SegWit adoption largely depends on cryptocurrency wallet operators and exchanges, as implementing the technical innovation by default allows users to easily transact using SegWit-enabled addresses.

Leading cryptocurrency exchanges like Binance, Coinbase, and Kraken haven’t yet implemented SegWit into their platforms, but have already pledged to do so.  In a now-deleted tweet, Binance CEO Changpeng Zhao claimed the firm was looking to add it by the end of the first quarter of this year.

SegWit adoption is seen as a plus in the cryptocurrency community, as the innovation helps better use blockspace and as a result reduce transaction fees and wait times on the Bitcoin network.

Featured image via Pixabay.