By Friday, December 7, Litecoin continues to fall and is trading in the accounting period 25.42 USD, according to Dmitry Gurkovsky, senior analyst at RoboForex.
Breaking below the last significant low, Litecoin continued to develop long-term downward trend. Possible that the current momentum of decline will last throughout long-term trends. That is, the market approaches its “bottom” in the area which investors will form portfolios for the long term.
If we consider the short-term prospects of cryptocurrencies, on the 1-hour timeframe we can see that quotes are testing the support line local channel, trying to punch her. If successful it will decrease the price to projected support at $20,10.
In addition, it is worth noting the formation of convergence on the Stochastic indicator. Convergence may indicate the approach of correction. Thus we can assume that after reaching the support level at $20,10 market will go in an upward correction to $of 27.30. The main purpose of the downward momentum of current period is $14,00.
In addition to Ethereum, large holders of cryptocurrencies – “whales” – accumulate and Litecoin. As observations show, Diar, in the last few weeks has become a significant expressed demand for LTC. At the same time daily trading volume of this coin increased, and the “lion’s share” of the deals accounted for 40 actively used digital wallets.
This is the main difference from the scheme on which the “whales” buy Ethereum: in the case of ETH used the existing wallets in the same situation with LTC created new accounts. The situation can be interpreted in two ways: on the one hand, it can be a completely new investors who come to buy the significantly cheaper scriptactive with other experienced investors to make new wallets, so as not to attract attention from other market participants.
Why is it done? Buyers see that the asset has become significantly cheaper, and the new panic selling, which “cover” the cryptocurrency market, use to enter the transaction. Offers on the site more than enough, and this makes acquisition more profitable in this case.
This week attention was drawn to the following case. 4 Dec for a short period of time for LTC was fixed large-scale transactions with a total amount of 36 million coins – it’s 1.16 billion USD. As the user says LTC Whale Watcher 50 virtual wallets has received 45 million coins more than sold. On the one hand, some wallets may belong to exchanges. On the other, it is likely those “whales” whose work is visible on the market. However, there is a version that these local transactions, was one of the major cryptological.
Attention!
Forecasts financial markets are private opinion of their authors. The current analysis is not a guide to trade. RoboForex is not responsible for the results that can occur when using trade recommendations submitted reviews.
Source
