Litecoin rallied on Friday, reaching towards the $53 level. If we can break above the $53 level, I think that the market should continue to go higher, perhaps reaching towards the $55 level. The markets have been stable over the last couple of sessions, and it looks as if the $50 level is going to offer a bit of a “floor” in this market. I think given enough time, we will eventually reach towards the $55 level above, which is my longer-term target. I think that every time we dip, there are plenty of buyers out there, especially considering how well Litecoin has rallied over the longer term. I believe that it is one of the more stable crypto currencies, and that of course will attract a lot of newer traders.
We have pulled back, but this offers value
We have pulled back a bit later in the session on Friday, but this only offers value. You can see that even though we have fallen over the last couple of weeks, it has been very subtle, and about $5. That’s not extraordinarily large when it comes to a crypto currency, so quite frankly this shows just how stable the Litecoin market can be. I think that adding incrementally is a great way to play this market, as you can build a large position for the longer-term rally that should continue soon. I don’t have any interest in shorting until we can break down below the $50 level, which I think would be psychologically damaging to the market. If we broke down below the $50 level, I think the markets probably go looking for the $45 level next. However, I think a breakdown below the $50 level is unlikely, especially considering the action that we have seen over the last 48 hours.