Breakout or Breakdown: The Outlook for Litecoin

I think it will breakout. A breakdown is almost equally likely though.

Litecoin currently trades at $145.96 (04/19/2018) with its all time high of $356 being achieved on 12/17/2017.

All data in answer sourced from onchainfx.

I expect it to trade higher than its current price because it appears to be bouncing off a bottom currently.

This also appeared to be the case though when it bounced off the Feb 6 low of $124 back to an interim high of $241 on February 20 after which it subsequently continued the longer term downtrend to an eventual low of $114 on April 10.

If the breakout continues it should rally past $241.

Exceeding its all time high of $356 near term would require a parabolic rise. Which doesn’t appear to be in the cards for any large cap coin in the crypto markets under current circumstances. So I think it is unlikely it surpasses this level.

If it does not rally past $241. I would expect the next low to be under the $114 from the last downtrend.

I’m 60/40 breakout versus breakdown because of the following reasons:

• Reduced selling pressure now that tax season has passed.
• Continued build out of the lightning network leading to increased usage lending support to prices going forward.
• Additional demand from partnerships with payment platforms like TenX and Korbit

It would not be a shock if any/all of these didn’t come to fruition though. Other bad news is possible too.

In which case I’d expect the recent rally to dissipate and a breakdown of price past the $114 mark.

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