Litecoin (LTC/USD) price has been recently percolating. You can mostly attribute this to these 2 factors:
1) News about Litecoin’s partnership with Beam to implement “Mimble Wimble”, a privacy protocol:
Litecoin Foundation and Beam Partner to Explore New Protocol, LTC Price Soars 30% (Cointelegraph)
2) Halving in March: Litecoin’s Halving Is Months Away, But Traders May Already Be Pricing It In (Coindesk)
While these developments can provide some resilience for Litecoin during this crypto winter, I don’t think the market is ready to put LTC/USD on a bullish trend yet. In fact, if you look at the chart from the Coindesk article I shared about halving (shown below), we can see that it still took a while after the first Halving, before price eventually took off. It did however, provide a floor:
LTC/USD Daily Chart
Support Turned Resistance:
When LTC/USD price approached $50, it was approaching a previous support area between $47.50 and $50.
Also note that the 200-day simple moving average (SMA) was around this area.
So far this week, we can see that price has respected this area as resistance.
First came an engulfing bearish candle, followed by a brief bounce, and then another bearish engulfing candle. These candlesticks reflect price action that is turning bearish after failing to push above $50.
From $40, we should at least anticipate downside of about 12.5% to $35. But there is a strong possibility of falling lower especially if crypto winter continues.
I think the market’s recognition of the Halving could help provide support around $30. (I have been accumulating at $30 as well).
But if crypto winter continues and LTC/USD gets pushed below $30, we can anticipate further downside.
In this scenario, I would be looking to buy some around $20.
But remember, in early 2017, before the latest mania cycle took off, price was hanging around $4 - $5.
The first sticky price above the $4-$5 range - briefly from April to May 2017 - was around $10. So I am also preparing dry powder for $10.