Litecoin (LTC) Faces Rejection At 200 Day MA But Golden Cross Draws Near

Litecoin (LTC) has achieved remarkable growth in the past few weeks. The daily chart for LTC/USD shows that the cryptocurrency surged more than 30% in just one day. However, the rally had to come to and when the price reached the 200 Day MA. As we can see, the price has been falling constantly after facing rejection at the 200 Day MA. Normally, we would expect the price to retrace a lot more after such an aggressive rally. However, something on the daily chart for LTC/USD hints that a big move to the upside is yet to come. If we look at the chart, we can see the price sandwiched between the 200 Day MA and the 50 Day MA.

Whenever the 50 Day MA crosses above the 200 Day MA, a golden cross occurs. This has always resulted in a strong move to the upside for Litecoin (LTC). There is no reason to doubt that this time will be any different if the crossover occurs. If the price falls further, it will find support atop the 21 Day EMA. If it falls even more, then we have the strong support at the 50 Day MA. However, the longer the price stalls a move to the upside, the more aggressive the move will eventually be. This cross over was expected around November, 2018 but the market took a swing to the downside and as a result the gap between the two moving averages widened.

However, things are a lot different now as the price is no longer below the 50 Day MA. It is trading between the 50 Day and the 200 Day Moving Averages and the crossover is a lot more likely to occur. Both RSI and MACD profiles for LTC/USD show that there is significant room for a retracement to the downside but the inevitable will still have to occur. The price may fall some more but ultimately it is supposed to see a golden cross that will push it closer to $100. It is also important to note that Litecoin (LTC) has its next halvening event in August and the price could receive a major boost before that.

Upgrades and improvements to networks are favorable developments that at times lead to big moves to the upside. However, halving tops the last when it comes to making a positive difference in price. Halvening is a straightforward event that uses the basic principles of supply and demand. When the mining rewards are cut in half, it is obvious to see that miners will have to spend a lot more resources to mine one Litecoin (LTC). Therefore, they would want to sell their Litecoin (LTC) at a higher price to turn a profit. We have seen over the past few years that making improvements to Bitcoin (BTC) on a larger scale are not as simple which is why coins like Litecoin (LTC) continue to have a use in this space for being a lot faster and cheaper than Bitcoin (BTC).