Litecoin: Knocked Out Cold -- or Just Dazed?
How to spot major turns in cryptocurrencies before they occur
by Nico Isaac
Updated: December 28, 2018
When the Ultimate Fighting Championship airs on Saturday, December 29, you may notice an unfamiliar logo in the famous octagon-shaped battle ring; namely, a slanted "L" with a distinctive slash known as the Litecoin emblem.
Turns out, Litecoin became the first cryptocurrency to officially sponsor the mixed martial arts UFC event. The union seems especially ironic now, seeing as Litecoin, the world's 7th (sometimes 8th) largest cryptocurrency was body-slammed to a bloody pulp between November and mid-December.
During that month-plus period, Litecoin was pummeled below $55... $45... $35... and then $25 -- before shakily getting back on its feet in mid-December. These crypto news headlines from the time capture Litecoin's losing streak:
- "Litecoin Crash: How Low Will Litecoin Go?" (Nov. 28 theoofy.com)
- "Litecoin Back Below $30: More Trouble for the Coin" (Dec. 5 Tokentops)
- "Litecoin Has Been Dead for a While" (Dec. 16 ambcrypto)
But Litecoin wasn't the only one in the virtual ring. Cryptocurrency's traders and investors were there as well, with one goal in mind: Anticipate Litecoin's price hooks rather than absorb those "punches" after they've occurred.
For that, our Cryptocurrency Pro Service Litecoin forecasts have been the ultimate coach. On November 9, the daily analysis identified a bearish Elliott wave pattern underway known as a contracting triangle. Triangles sometimes take time to develop, but once complete, they initiate a short, swift "thrust" in the direction of the previous trend.
On November 9, Cryptocurrency Pro Service wrote:
"LTC looks to be back under pressure following yesterday's pop to 55.94. It would suggest the wave (iv) triangle may now be complete [and a thrust lower is next]... A reversal below 50.34 would be a preliminary sign."
From there, Litecoin took an elbow in the ribs and plummeted to a 14-month low on December 14.
On December 16, Cryptocurrency Pro Service intraday analysis set the stage for an upward reversal with this chart and outlook:
"The impulsive advance above 24.04 and solid breakout above the trend channel suggest Litecoin could have completed wave C. The test for a bottom would then be whether or not a further advance can overlap 29.50. If LTC can, the case for a bottom should be made."
Again, Litecoin followed its Elliott wave cue, peeling itself off the mat and bouncing to a 5-week high.
At the final turning point, on December 24, our Cryptocurrency Pro Service Litecoin analysis stepped in with this bearish, near-term forecast:
"The divergence between price and momentum warns the rally is weakening.A decline below 34.21 would hint wave v is complete and a correction of the rally from 22.17 has started."
From there, Litecoin turned down. The chart below captures the full Elliott wave labeling of Litecoin's November-December 28 price turns.
As for where the cryptocurrency heavyweight is headed now, our Cryptocurrency Pro Service offers objective insight into the intraday and daily trend changes in store.
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