Litecoin Price Broke out of the important resistance area represented by the top of the triangle formation where the price was evolving since Litecoin price’s all time high end of August.
This could be a false Breakout so investors and traders need to watch the price movement in the next 48 hours for confirmation. Today was a special day as we saw how Parity wallet had a serious security issue where a whole library was wiped clean. This flaw caused users to see their Ethers frozen in their multisig Parity wallets. The amount frozen is about 1% of the total Ether in circulation.
This is why we want to be cautious as it might be a temporary flow of funds into Litecoin since this vulnerability is specific to Smart contracts. Although from what we have gathered, it was the way the smart contract was handled by Parity that caused the vulnerability.
Litecoin Price Levels to Watch
We have identified the following as important price levels to watch:
- To maintain outside the resistance area which could potentially become a solid support, Litecoin price needs to stay above 56 USD.
- For Litecoin to signal an upcoming Bullish Move, the price needs to break above 68 USD in the next 48 hours. This will mean Litecoin price regained the green ascending channel.
- Our Litecoin price forecast of 100 USD end of 2017 – 2018 still stands and happens to be the top of the green channel. If the move and volume are significant, we might see the price touch 120 USD before returning into the green channel.
- 50 USD seems to be a very strong horizontal support area for Litecoin as of mid-September. That same area was a strong resistance and caused 4 tops between June and August. This was right before the massive breakout on the 31st of August when Litecoin broke out to reach more than 90 USD.