Litecoin (LTC) has been on a roll for the past few weeks and it has now broken past the 61.8% Fibonacci retracement level and is eyeing the 1.272% Fib level to finish this rally. We saw LTC/USD run into the top of the ascending channel soon after it broke past the 61.8% Fib level but it did not decline sharply. Instead, the price started to rise again after a minor pullback and ran into the trend line resistance once again. The price is expected to do the same once more after a small retracement short term. This next rally would most likely result in a test of the 1.272% Fib level at the top of the ascending channel. That is expected to be the final move to the upside before the next major decline sets in.
The halvening FOMO had a big impact on the price of Litecoin (LTC) and we saw the price rise aggressively when the mainstream media started talking about Litecoin (LTC)’s next halvening in August, 2019. We are still a long way from August but considering that Litecoin (LTC) is not a big enough cryptocurrency to be a bought on OTC markets, most of the buying and selling is done on exchanges and when some traders started to see the whales accumulating large amounts of Litecoin (LTC) they followed. This led to the herd following both the whales and the professional traders and the price of Litecoin (LTC) shot up until it topped out on most time frames. Please note that whenever the whales want something so bad, they want to create a negative experience.
Chart for LTC/BTC (1W)
The way this works is that you prop up the price of an asset prior to an expected development and then you crush its price well before that development (halvening). They have been doing it with stocks, commodities and a plethora of other financial assets for years. Let’s say a company had good earnings and Wall Street wants the stock really bad. So, they crush the price so the retail investor would feel bad about the price going down on positive news. We saw the same happen with Ripple (XRP) when the price kept declining sharply during its Swell Conference in 2017. A lot of people took this as a sign of weakness but the professionals knew what was going on so they bought the dips. In the weeks after, Ripple (XRP) rose to a new all-time high.
Litecoin (LTC) is having a good run now but when the market starts to decline, a lot of people are going to give up and Litecoin (LTC) is most likely going to get crushed one of the hardest because it has already rallied so aggressively. This will once again result in a lot of people giving up on Litecoin (LTC) but the smart money as always will know when to buy for long term. Litecoin (LTC) is down more than 83% from its all-time high and we expect it to go down further. However, let us not forget that the price cannot just decline 100%. No matter where the bottom is, there is no doubt that it is very close. So, if anything this is the time to be accumulating, not selling.