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Steve Miller

Co-Founder at MPower365
Is a CFA® Charterholder and co-founder of MPower365.com. A site devoted to helping people integrate cryptoassets into their investment portfolios. The CFA designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.

Visit the site to subscribe to the newsletter and stay up to date on his latest research into cryptoasset investing.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
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Breakout or Breakdown: The Outlook for Litecoin

I think it will breakout. A breakdown is almost equally likely though.

Litecoin currently trades at $145.96 (04/19/2018) with its all time high of $356 being achieved on 12/17/2017.

All data in answer sourced from onchainfx.

I expect it to trade higher than its current price because it appears to be bouncing off a bottom currently.

This also appeared to be the case though when it bounced off the Feb 6 low of $124 back to an interim high of $241 on February 20 after which it subsequently continued the longer term downtrend to an eventual low of $114 on April 10.

If the breakout continues it should rally past $241.

Exceeding its all time high of $356 near term would require a parabolic rise. Which doesn’t appear to be in the cards for any large cap coin in the crypto markets under current circumstances. So I think it is unlikely it surpasses this level.

If it does not rally past $241. I would expect the next low to be under the $114 from the last downtrend.

I’m 60/40 breakout versus breakdown because of the following reasons:

  • Reduced selling pressure now that tax season has passed.
  • Continued build out of the lightning network leading to increased usage lending support to prices going forward.
  • Additional demand from partnerships with payment platforms like TenX and Korbit

It would not be a shock if any/all of these didn’t come to fruition though. Other bad news is possible too.

In which case I’d expect the recent rally to dissipate and a breakdown of price past the $114 mark.

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Steve Miller

Co-Founder at MPower365
Is a CFA® Charterholder and co-founder of MPower365.com. A site devoted to helping people integrate cryptoassets into their investment portfolios. The CFA designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.

Visit the site to subscribe to the newsletter and stay up to date on his latest research into cryptoasset investing.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

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