By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
On Friday, March 5th, Litecoin is correcting not far from $172.51.
As we can see in the daily chart, LTC/USD is still correcting within the ascending tendency. the current situation is as follows: after completing the correction, the asset may trade near 38,2% fibo. In the nearest future, the price may break the support level and test 50.0% fibo. The MACD histogram is below 0, thus implying that the correction continues, while its signal lines have formed a “Black cross”, which is another signal in favor of a further pullback. All these factors taken together imply that the asset may continue the correction towards 50.0% fibo, rebound from it, and then resume growing to reach $240.00.
In the H4 chart, Litecoin is also trading close to the support level. At the moment, we can expect a rebound from 50.0% fibo. Stochastic has formed the “Golden cross” and is currently moving towards the “overbought area”, which is another signal in favor of a further uptrend. The upside target here is $240.00.
Grayscale Investment has acquired 178,600 LTC over the 30 days. The sum invested in this number of crypto-coins may be about $28.9 million. The fund increased its long positions in LTC simultaneously with purchasing BTC and ETH. At the moment, the fund has a trust in LTC approximately worth $255.6 million.
At the same time, the total sum of all cryptocurrencies controlled by Grayscale is estimated at $36.9 billion. Grayscale acquires Litecoin for its clients and for the funds that are in stable demand.
It’s interesting that it was Grayscale that acquired 80% of all LTC mined in January 2021. It’s a pretty big volume, which may influence the market behavior.
Any predictions contained herein are based on the author’s particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.