If we do rally, it will be more or less a situation where we grind higher, not necessarily take off to the upside.
Litecoin has fallen during the trading session on Thursday to reach the 50 Day EMA. The 50 Day EMA is an indicator that a lot of people have paid close attention to, and therefore it is likely that we continue to see the 50 Day EMA offer bits and pieces of support, especially as it is racing towards the $125 level. There is a certain amount of psychological support there, and therefore you need to pay attention to that as well.
Over the last three days, we have seen a significant amount of resistance near the $131 level, and therefore a move above that level could open up fresh buying, and a market that looks as if it is trying to figure out whether or not it can take out to the upside. If we do rally, I think it will be more or less a situation where we grind higher, not necessarily take off to the upside.
The 200 Day EMA sits just below the $150 level, and therefore I think it makes a nice target. That is an area that I think will act as a bit of a “ceiling in the market”, and therefore if we were to break above there, it would change everything for Litecoin. Keep in mind that Litecoin will also be influenced quite a bit by larger coins out there such as Bitcoin and Ethereum. If they continue to rally, then that will be very good for Litecoin. It is worth noting that both of those markets did pull back a bit during the trading session, but at the end of the day, they look as if they are trying to break out.
If we break down and close below the 50 Day EMA, then it is likely that the market goes looking to the $100 level underneath. That is where we had bounced from rather significantly in the past, so therefore if we were to break down below that level it would be catastrophic for Litecoin. That being said, we are starting to see more money flow into crypto overall, so that should of course bleed over into this market as well. The candlestick size for the trading session should be paid close attention to, because it does suggest that there is much more in the way of conviction during the day.