March has been a big month for litecoin. A number of key events have passed that echo the build up to the dramatic revaluation of its more valuable counterpart, bitcoin. What are these events, and how might they affect the LTC/USD?
The first major piece of news was that influential Bitcoin exchange, BTC China, had introduced litecoin trading. According to the exchange, the introduction came “by popular request”, hinting at strengthening demand for the cryptocurrency. The second major event was the announcement that another Chinese exchange, Huobi, had added litecoin to its books. This caused the LTC/USD to break the 20.00 barrier for the first time in six-weeks. Finally, just a matter of hours ago, BitcoinSource, a popular cryptocurrency news provider, had launched BitSource.org, a brand new cryptocurrency exchange that will focus on litecoin.
So how might these events affect the LTC/USD? Throughout Tuesday’s trading, the pair has experienced some considerable volatility, trading between range resistance at 16.3007 and range support at 15.8870. Currently, the pair is trading just shy of mid-range support at 16.0430.**relatedarticle**
Action around this level will likely dictate sentiment as we head into the European afternoon and the US morning markets absorb some volatility. A break above mid-range support would suggest a hold to range resistance at 16.3007, with an interim shorter-term target at 16.1589. A break above resistance would suggest an upside range breakout, offering up an initial target at daily highs of 16.3490.
Conversely, if current support holds, keep an eye on price action around 15.8870. The fundamentally bullish bias may be enough to reinforce this support, in which case, expect a simple retest and a return of upside momentum towards the aforementioned targets. A break below support however, would hint at the potential for fresh daily lows. A close below 15.8870 would serve up an initial downside target at 15.8098, and beyond that, Monday resistance at 15.7304.
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