After one of the bloodiest Decembers on record for Crypto, 2019 appears to be starting off with some alleviation. Since reaching within margin of Charlie Lee’s notorious target of $20 set back in 2018, Litecoin has rallied over 50% peaking at $37.5 per coin.
Litecoin briefly traded above historical resistance created back in 2017 after the breakout at $35, this has since however, failed to hold and the price is now trading back below it. There have been a couple of retests as it tries to break above this resitance with conviction. Many had hopes pegged on a potential inverse head and shoulders pattern which should see a return to ~$50, however, as time continues to tick on, the likelihood of such becomes more unlikely.
Support below now sits at $18, the same range created back in 2017 and a break of this would signal more pain to come and move all eyes to the physcological $10 target.
Bitcoin continues to lead the market and while sentiment has changed, some analysts, including Tuur Demeester and Tone Vays remain unconvinced that the bottom is in. Short and Long positions on Bitfinex have once more reached parity, as of publishing and until one of these targets is broken and sustained the sentiment remains neutral.
A few in the Litecoin community however, don’t see this as an issue and have started what they are calling the 365 Challenge. Those partaking have vowed to purchase at least $1 worth of Litecoin everyday in 2019 as they view this as the accumulation phase of the market having reached the typical 90% correction point. Only time will tell if this ‘challenge’ pays off, but with all the new institutions coming on board and the halving occurring in August it will be interesting to see the results.