At the end of last week, eGifter, a global social gifting company, announced it had teamed up with GoCoin, the altcoin and bitcoin payment processing company, to facilitate the acceptance Dogecoin and Litecoin for purchases. The company believes that this will provide a secure, fraud-free transaction at only 1 percent of the cost- versus over 2 percent with a credit card.
The news came off the back of an announcement made by Charlie Lee, creator of Litecoin, that the tow cyrptocurrencies could benefit from merged mining.
Having bucked recent trends, Litecoin had something of a quiet week as far as volatility was concerned, but this quickly changed as a result of the two announcements.
The first announcement, concerning the proposed merger, saw the LTCUSD drop from ts weekly support at 11.077, initially to support at 9.943, then to fresh weekly lows at 8.077. These lows served up significant support however, and the pair quickly recovered all of its losses in the wake of the acceptance announcement. Now trading just shy of weekly highs at 11.471, can the LTCUSD maintain its bullish technical bias?
The two levels to watch are in term support at 11.077 and in term resistance at 11.596. A break above in term resistance would validate an initial upside target 12.096. Beyond that, look for two weekly highs at 13.055 to validate a bullish technical bias heading into Tuesday’s trading.
Conversely, if the bears take control of the pair, look for a break below in term support at 11.077 to offer up an initial downside target of previous support at 10.054. A break below this support would offer up a secondary downside target of daily lows at 9.943. A strong bearish drive, and a close below the aforementioned daily low, would offer up an intraday downside tertiary target of weekly lows at 9.528.
All said, a volatile couple of days is likely some indication of what is to come as the week matures. Watch the in term levels for an intraday bias, and take the targets as they come.
To contact the reporter of this story; Samuel Rae at Samuel@forexminute.com