LiteCoin had a relatively sideways session against the Euro, as we continue to tread water just below the €40 level. If we can finally break above there, the market should continue to go much higher, allowing the pair to become more of a “buy-and-hold” situation. I think that short-term pullbacks will be supported below, especially near the €38 handle. As you can see on the chart, I have drawn a yellow rectangle, and that suggests that there is plenty of support in that region. I think that if we drop from here, the market should continue to find plenty of buyers. If we break down below the €38 level, the market probably goes looking for the €37 level after that. That area should be even more supportive.
Pay attention to LTC/USD
We should also pay attention to LiteCoin against the US dollar, as it gives us an idea as to the overall strength of the currency. If it rises, this market should as well. However, if we start to break down over there, that could have a bit of a “knock on effect” in this market. Nonetheless, after the impulsive move several sessions ago, I believe that the buyers are going to continue to be attracted to this market, and eventually we should continue to go much higher. I believe that a break above the $40 level probably has this market looking for $45, and then eventually the $50 level. Plenty of volatility should be found, but quite frankly if you can hang on through that type of noise, you should be rewarded over the longer term. Currently, I have no interest in selling LiteCoin against the Euro, as I believe that we are going to continue to see buying pressure over the next several sessions. Patience will be rewarded.