Over the past week or so, we brought readers attention to the action in both Ethereum (ETH) as well as Litecoin (LTC). While both had been acting fairly well and displaying decent technical characteristics (particularly ETH), both have recently given way to the down-side joining the entire slide within the cryptocurrency universe.
While neither ETH nor LTC was exhibiting signs that an imminent break to northern ground was in the offing, both nonetheless were showing some signs of strength in their ability to hold the line while many cryptocurrencies had already begun to show technical deficiencies.
Nevertheless, both time and market conditions have caught-up with both ETH and LTC as both have succumbed to selling pressure and find themselves trading at or near potential short-term support levels/zones.
With that said, let’s revisit both Ethereum and Litecoin and see what the technical picture is portraying at this time.
As we can observe from the daily Chart of ETH above, Ethereum was holding things together fairly well, while trading within a triangle formation and holding support at the 640-660 zone. Although the coil was tightening within the triangle and a move either top-side or southbound was in the cards, ETH was still displaying decent relative strength until ultimately breaching the triangle lower where it presently finds itself flirting with yet another potential support zone in the 575-600 area.
Thus, as a result of current overall conditions within the cryptocurrency sphere, ETH was unable to withstand the selling onslaught and now requires work in order to repair its technical posture.
With that said, let’s take a look at some levels to monitor moving forward that may provide both investors/traders with further clues/evidence with respect to direction.
If, at any point in the days/weeks ahead ETH can recapture the 660 level (former support now turned short-term resistance) and perhaps more importantly can clear the 725 hurdle and ‘stick’, such development, should it materialize, would be a positive indication that perhaps buyers have wrested control back into their hands.
However, on the opposite side of the ledger, both investors/traders may want to monitor the 550-575 zone as initial potential short-term support, with more meaningful potential support residing at the 480-500 zone.
Nonetheless, ETH has (as has the entire cryptocurrency landscape) fallen victim to overall market sentiment and now finds itself in an attempt at containing any further slippage.
Moving on to Litecoin (LTC), we can observe from the Chart below that LTC has also fallen victim to Mother Market after attempting to come up-and-out of and inverted Head-and-Shoulders (H&S) formation earlier this month only to fail just above the neckline (purple horizontal line) and slide the slippery slope lower.
When viewing the action of LTC above, we can witness that after LTC failed just above its neckline in early May, the move for lower depths began and as a result, LTC breached both its 200 (red line); 20 (yellow line) as well as its 50DMA’s (blue line) respectively, which negated any favorable technical characteristics and now finds itself trading below all of its important moving averages (20/50/200DMA’s) as well as the downtrend line (light blue line).
Thus, while things were looking fairly good for LTC from a technical perspective just a short few weeks ago, the tables have been turned and now LTC, like the entire cryptocurrency sphere, finds itself attempting to stem any further bleed lower.
With that said, both investors/traders may want to monitor the following levels for additional clues/evidence with respect to a direction moving forward.
If, at any time in the days/weeks ahead, LTC is capable of recapturing the 124 as well as the 140 figure/s and perhaps, more importantly, can clear the 154 hurdle and ‘stick’, such accomplishment, should it materialize, would certainly be a first step in repairing the short-term technical damage inflicted.
On the flip-side of the coin, both investors/traders may want to monitor the 109-112 zone with a close eye for potential short-term support as LTC has already taken-out multiple support levels just above where it trades at this moment in time.
Needless to say, the overall environment remains slippery and challenging. Thus, both investors/traders (particularly Traders) may want to keep things on a tight leash and honor Your Stops as risk management is priority number one and paramount, as always. Live to trade another day!
For the latest cryptocurrency news, join our Telegram!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Pexels
Charts courtesy of tradingview.com
Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors
When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat. These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor. But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.
Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace. The real benefit to trading in these offices is to participate in the free flow of trading ideas and information. Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed. Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?
While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.
Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors. The goal of the platform is to help newcomers shorten their learning curve,…
CoinFlip Scores Big with BRD Wallet Partnership
As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible. While many crypto users are extremely tech oriented, a lot of those on the sidelines are not. The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above. In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country. Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.
In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map. Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells. BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit. The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.
Cryptocurrencies are already making a huge difference around the world. Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…
Cryptocurrency Collateralized Debt Positions Are Growing in Popularity
While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle. Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance. One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess. That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS. These projects have managed to find a foothold in the market and have a better chance than most of staying there. While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.
What is a Cryptocurrency CDP?
In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount. There are several examples of this in our day to day lives. Auto title loans from large companies like TitleMax are extremely popular with consumers. Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has. The consumer can continue using their car as long as debt payments are made.
The same concept applies to cryptocurrency CDPs. Consumers are able to put up crypto tokens, such as…
Warren Buffett and TRON’s Justin Sun Finally Meet for Charity Lunch
Should You Invest in TRON in 2020?
CoinField Launches Sologenic Initial Exchange Offering
featured2 weeks ago
Altcoin Magazine has Rebranded as The Capital and 100x’ed its ambitions
Bitcoin2 weeks ago
5 Best Places to Bet with Bitcoin
Don't Miss1 week ago
Best Study Resources to Pass CompTIA SY0-501 Exam and How Should You Use Exam Dumps to Prepare?
Don't Miss1 week ago
Many of the Top Sports Betting Websites for 2020 Can Be Found On Boomtown’s Best Betting Page
Don't Miss1 week ago
Learn 2 Trade Launches Real-Time Crypto Signals Service
Don't Miss1 week ago
What Prevents Crypto from Becoming the Top Payment Method
Featured news4 days ago
5 reasons why you should use a brokerage exchange service to buy and convert cryptocurrencies
Bitcoin5 days ago
Trusted Crypto Tumbler To Protect Your Wealth