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Was Litecoin’s Recent Breakout Legitimate? (LTC/USD and LTC/EUR Price Prediction for 05/01/19)

3 mins
Updated by Valdrin Tahiri
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At BeInCrypto, we regular price analyses and predictions for Litecoin (LTC). In our Apr 29 Litecoin (LTC) analysis, we predicted price increases. Our prediction was validated the next day when the price reached the resistance line of the wedge we have defined below. To learn more, read our latest LTC/USD($) and LTC/EUR(€) analysis below:

On Apr 11, 2019, the price of Litecoin reached an hourly high of $88.47 and €78.73.

Since then, Litecoin has experienced steady, gradual price losses. Lows of $68.8 and €58.2 were reached on Apr 29
Outlook
Will Litecoin keep decreasing or will a reversal start an uptrend? Let’s find out!

Litecoin (LTC): Trends And Highlights For May 1, 2019

  • Both LTC/USD and LTC/EUR have been on a downtrend since Apr 11.
  • LTC was trading inside a descending wedge.
  • It broke out on Apr 30.
  • The breakout occurred on below-average volume.
  • There is resistance near $81/€70 and support near $74/€62.5.

Horizontal Channel

The price of LTC/USD on Bitfinex was analyzed at four-hour intervals from Apr 11 to May 1to determine the current trading pattern. We do not include euros in this section because only one trading pair is needed to generate the current trading pattern. Both LTC/USD and LTC/EUR are discussed in the final two sections.
On Apr 11, the price reached a high of $78.73. Several market cycles have been completed. The price has reached lower highs each time. Tracing these highs gives us a descending resistance line:
Resistance Line
On Apr 11, the price reached a low of $66.84. A gradual increase was followed by a gradual decrease. After every cycle, the price has created lower lows. Tracing these lows gives us a descending support line. The support and resistance lines combine to create a descending wedge:
Descending Wedge
The price broke out from the wedge on Apr 30. In order to test the validity of the breakout and future price movement, we need to take a look at technical indicators.

Technical Indicators

We begin by analyzing volume alongside the price of Litecoin.
Volume is a tool used by traders that measures how much of an asset is bought or sold in a given period of time.
Both price and volume are shown in the graph below:
Volume
The breakout occurred with slightly above average volume. However, multiple candles during the period in which LTC traded inside the wedge were trading with above-average volume. The use of this indicator combined with previous price movement suggests that the price will decrease and reach one of the support areas outlined in the next section.

Future Movement

To better determine actual future price levels, we examine resistance and support areas.
Resistance and support areasare formed when the price reaches a certain level several times. In the case of a breakout/breakdown, they can provide likely areas of reversal.
One resistance and one support area is shown for LTC/USD in the first graph and another for LTC/EUR in the second graph:
USD Reversal EUR Reversal
The closest support area is found near $74/€62.5. we believe that the price will eventually reach this area. The closest  resistance area is found near $81/€70. We do not believe the price will increase towards this area. However, if it does, we believe it will act as a ceiling to price. Therefore, we believe a breakout above this area to be very unlikely.

Summary Of Analysis

Based on this analysis, it is likely that the price will decrease towards the support area we have outlined above. However, if it begins to increase, we believe it will make a top near $81/€70. Afterward, it is likely to continue its decrease towards the support area at $74/€62.5. Do you think the price of LTC will reach the support area?  Let us know in the comments below. If you’re interested in 2019 and 2020 price predictions for Litecoin in dollars, click on the blue button below LONG-TERM LTC/USD ANALYSIS Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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