We are still technically in a downtrend, but also look as if we are trying to do everything to make that change.
Litecoin has fallen 1.67% during the trading session on Wednesday, as we continue to hang about the $110 region. Because of this, I think the market is looking for some type of catalyst to decide which way to go next, and that catalyst will more likely than not be external. After all, Litecoin is a small coin and a small market when it comes to crypto. Because of this, the Litecoin market will have to pay close attention to Bitcoin, and perhaps even Ethereum.
If we can get momentum in the bigger markets, it is likely that Litecoin will continue to see buyers, perhaps using the $100 level as a major support line. The $100 level is an area that has been important multiple times in the past, so I think it only makes sense that a lot of buyers will return if we dipped to that level. That being said, if we were to break down below this level, then it is likely that we could go looking to reach the $75 level underneath, perhaps even the $50 level.
If the market were to turn around and rally, the 50 Day EMA at the $118 level is a major barrier to overcome. If we can break above there, then the market could go looking to reach the $125 level. That is an area that has been important more than once, and therefore I think the resistance will be rather significant. The market breaking above there of course would be a very bullish sign, perhaps opening up the possibility of Litecoin reaching the 200 Day EMA. That is currently at the $143 level, but it would obviously take quite a bit of effort to make that happen.
Furthermore, you would need to see the rest of the crypto markets take off to the upside. At that point, I would anticipate that Bitcoin should be somewhere near the $50,000 level. The $50,000 level is an area in the Bitcoin market that will cause a lot of headlines, and therefore it would make a significant amount of noise. Ultimately, this is a market that looks as if it is trying to make a bit of a bottom in Litecoin, but it still has significant work to do. We are still technically in a downtrend, but also look as if we are trying to do everything to make that change.
