Litecoin Sees Slight Retracement After Completing Bullish Wave
After seeing stellar performance in both BTC and USD terms since the beginning of the year, litecoin (LTC) is now experiencing a pullback that brought the price down to its 10-day moving average.
As of pixel time on Tuesday (12:25 UTC), litecoin trades at c. USD 74 and is up almost 2% over the past 24 hours, and 11% over the past 7 days, outperforming bitcoin by a wide margin over both time periods.
For now, LTC appears to have found support at its 10-day moving average line, given that the price bounced off of that level several times Tuesday morning. Despite the slight pullback, however, litecoin’s chart is still looking bullish on the daily timeframe, with several technical indicators pointing in its favor.
The cryptocurrency, developed by Charlie Lee back in 2011, has been among the strongest major cryptoassets this year, with price gains accelerating after the coin completed a bullish cup-and-handle pattern in late January, and eventually breaking through its key 200-day moving average. The latter indicator is used by many long-term traders to differentiate between bull and bear markets, while the cup-and-handle is often seen as a major price bottom in charts.
Shortly after breaking its 200-day moving average, however, another important signal on the litecoin chart appeared with the crossing of the 50 and 100-day moving average lines, seen by some investors as a sign that the market is in an overall uptrend. The crossing occurred on February 5, which remains litecoin’s strongest day so far in February.
On the fundamental side, things are also happening for litecoin, with the Litecoin Foundation announcing that it is partnering with the California-based crypto lending and borrowing platform Cred to “offer financial services to Litecoin (LTC) holders.” According to the announcement, the new partnership will enable litecoin holders to receive up to 10% annual interest on their litecoin deposits.