Look at rallies as a potential shorting opportunity.
Litecoin markets have fallen a bit during the trading session on Thursday to reach the $60 level. We have turned around to show signs of life since then, so it does suggest that Litecoin is going to try to bounce just a bit. Nonetheless, this is a market that is in a strong downturn, and I think at this point it is only a matter of time before we start shorting again.
The 50 Day EMA sits at the $90 level and is driving much lower. This is a market that continues to see a lot of downward pressure over the longer term, and I just don’t see how Litecoin takes off to the upside due to the fact that crypto in general is struggling. If we break down below the $60 level, that would show a huge move to the downside given enough time, perhaps reaching down to the $50 level. Regardless, even if we do break out from here, I’ll be looking for selling opportunities at higher levels.
Litecoin is essentially too far out on the risk spectrum to think that it can go anywhere without some of the more “common coins” rallying. Bitcoin and Ethereum both need to rally before Litecoin will for anything worthwhile. As long as crypto markets continue to struggle, Litecoin will follow right along with the rest of them. Oddly enough, Monero is the only one I’ve seen recently that has been strong enough to be interested in. At this point, there is nothing going on in the world of Litecoin that’s worth being bothered with.
I feel that the market is looking very much like the technology stocks in 1999, that we are starting to separate the useful coins from the useless ones. Back then, there were a whole host of overvalued technology stocks that caused a big crash. After that, we had some of the massive leaders in technology emerge. That’s probably what’s going to happen with Bitcoin and Ethereum, but anything farther out on the risk spectrum is still purely speculative. Whether or not Litecoin survives for the bigger move is a completely different question, but it certainly is at risk of falling apart and perhaps even going to zero, right along with many other altcoins. In the meantime, look at rallies as a potential shorting opportunity.