Key Highlights
Litecoin hit an intraday high 219.04 on Wednesday, before easing back ahead of the close to end the day up 37.8% at $219.04.
A bullish trend continues through the early part of Thursday, with Litecoin up 10.33% to $233.74 at the time of writing.
Litecoin’s first major resistance level of $241 has yet to be tested, with this morning’s intraday high $237.72 falling short.
Litecoin Price Support
Litecoin has been the trailblazer this week, up 56.6% from Monday’s open, with Litecoin having smashed through its resistance levels this week.
Following a mixed start to the day, the major cryptocurrencies are in positive territory and for Litecoin, a move through its first major resistance level is going to be needed to avoid a pullback to its 23.6% FIB Retracement of $205.27.
While Litecoin has been on the move this week, there has been some uncertainty over the cause of the move, with some speculation over the possibility of a Litecoin fork and creation of Litecoin Cash being considered as one of the key drivers. The anticipated roll out of LitePay on 26th February will also be a factor and, with Litecoin’s founder Charlie Li having talked down the possibility of a fork, LitePay will likely be the main reason behind the moves this week.
Litecoin’s market cap is up to $12.58bn and Bitcoin Cash continues to be the next target, though some care will be needed in the days ahead to ensure that there has been no influence on Litecoin from the fork chatter from earlier in the week.
On the downside, a fall through the 23.6% FIB Retracement level could see a more significant pullback to test $185 and $177 support levels, with such a move likely to affirm the views of those who have attributed the rise to fork talk and nothing else.
We will expect Litecoin to ease off today’s highs, however, as Litecoin stalled at $233 this morning, though the declines are unlikely to be significant with plenty of support at current levels, with the speculative investor looking to jump in, on hopes of a rally through to $400 and beyond.
Looking at the Technical Indicators
Major Support Level: $177.8
Major Resistance Level: $241.4
Fib 23.6% Retracement Level: $204.27
Fib 38% Retracement Level: $185.19
Fib 62% Retracement Level: $152.73
