Litecoin Technical Analysis – Litecoin Fork to Test Support 18/02/2018
Having broken resistance levels through the week, this morning has been a day of testing support levels, with Litecoin’s heavily anticipated hard fork this evening in focus through the day.
Key Highlights
- Litecoin hit an intraday high 234.75 on Saturday, before easing back to end the day up just 0.99% at $239.49.
- Following a bullish trend through the week, Litecoin has seen a bearish trend form through the early part of this morning, with Litecoin hitting an intraday low $215.03.
- Litecoin’s first major resistance level sits at $213.6, with Litecoin having fallen through its first 2 resistance levels of $234 and $222 this morning.
Litecoin Price Support
A particularly stellar week has turned somewhat bearish this morning, with Litecoin down 3.93% to $220.86 at the time of writing. This morning’s poor start to the day comes off the back of a lackluster Saturday that saw Litecoin gain just 0.99% during a relatively bullish Saturday, while the likes of Bitcoin gained more than 9% on the day.
Having broken resistance levels through the week, this morning has been a day of testing support levels, with Litecoin’s heavily anticipated hard fork this evening in focus through the day.
This morning’s decline has seen Litecoin fall through support levels, with the next major support level sitting at $213.6. We will expect major resistance at 38% FIB Retracement of $222.56 to keep the pressure on Litecoin through the day.
Any pullback through to sub-$219 levels will likely see Litecoin test its next major support level of $213.6 ahead of today’s fork.
The continued speculation on whether this evening’s fork is just a scam to manipulate Litecoin’s price has likely pegged back Litecoin seeing more material gains through the weekend, with sentiment towards the fork certainly mixed.
A scam and we can expect Litecoin to reverse last week’s gains, with investors reacting to having been duped into going back into the market. Even if the fork takes place and Litecoin Cash results, some pullback is inevitable as investors move out following the fork in anticipation of a sell-off, once the Litecoin Cash coins have been received.
How much of a reversal will be indicative of how much influence the announcement of the LitePay’s release on 26th February had on an appetite for Litecoin last week?
It’s certainly a testy time for Litecoin and the crypto market, with the crypto market having a tendency to go into reverse on Sundays, ahead of Monday’s open, as concerns over regulatory chatter continue to plague the market.
What You Should Know Ahead of the Litecoin Hard Fork
Looking at the Technical Indicators
- Major Support Level: $213.6
- Major Resistance Level: $234
- Fib 23.6% Retracement Level: $219.68
- Fib 38% Retracement Level: $222.56
- Fib 62% Retracement Level: $227.22
