Litecoin price weekly analysis 5 July: Values increase as Litecoin’s decline is arrested
Litecoin's price decline is arrested as $100 comes back into play.
- A good week has seen gains in excess of 8% for Litecoin.
- The long-term price decline of the last three months seems to be arrested for now.
- Traders are coming out, pushing the price back up towards the $100 mark.
Litecoin has had a solid week, following much of the market upwards as the recent slump seems to be broken.
After starting the last seven day trading period at about US$80, it tumbled to $73.75 over the weekend before big rises on Saturday and Monday saw the price lift to $83.24 and then $86.27. Further, less extreme increases got LTC close to the $90 level where traders backed off.
The price has been trading at between $84 and $88 this week.
Trading volumes reflect market bulls coming out whenever the price settles. Each large price increase has been mirrored by increases in 24-hour trading volumes from around $290 million to $350 million.
The support level most analysts agree on as being critical is $83. If the price dips below that level, then Ethereum World News says the mid $70s are on the cards. But there's confidence that the price can make its way to $102 although that's where the bulls will meet resistance says Coin Telegraph.
That trading range, of between $80 and $102 is backed by Economies.com that says the trend for Litecoin is "bullish".
Watching the markets over the last few weeks, I cannot help but feel we are still dealing with a market that, to a large degree, is still behaving immaturely. A simple look at the trading patterns of almost all the top 10 coins by market capitalisation reveals that when the market moves, the majority of cryptocurrencies move together. That tells me there's little differentiation, or perhaps understanding of differentiation, between different coins.
For example, the types of solutions being built by Ethereum are different to those being developed by Ripple. Yet the market largely treats them as the same type of commodity. In my view, that's a bit like saying Woolworths shares and BHP shares should be subject to the same analysis as they're both shares. Yet their business values and propositions are very different.
Litecoin still has a long way to go before it reaches the $177 level we saw back in May. And the $320 price we saw back in January is now a long way back in the rear-view mirror. So the optimism we're seeing now needs to be tempered against that longer-term view. The line we've seen established over the last two weeks or so is an arrest in LTC's decline rather than a rise.
Disclosure: At the time of writing, the author holds BTC, EOS, ETH, XLM, ETN, LTC, ADA and XRP.
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