LTC makes an 11 percent leap – what is the reason for the surge?

LTC makes an 11 percent leap – what is the reason for the surge?
Jan 6, 2019 by Rico Wise

The LTC/USD exchange rate has set up a daily peak at 37.539 USD during a bounce from the short-term ascending trendline support. Since Dec 27, the so-called digital silver was in the consolidation period within a strict area, akin to its peers over the digital currency space. The refreshed purchase bias arrived 72 hours subsequent to the OKEx’s launch of ETH and LTC permanent swaps. On the day, LTC had made a direct attempt at performing a rally, which collapse around 34.962 USD.

Similar to LTC, ETH has also recorded substantial growth on the same day, making it clear that cryptotraders took the bait in the form of the news and turned bullish. Ultimately, the effect of the news might come off, as LTC overperforms in relation to its temporary bullish target – at the very least, fundamentally, as it occurs every single time after exaggerated surges in the cryptomarket. Nevertheless, currently the price activity teases the idea of a technical play.

The LTC value is creating a pattern build defined by the ascending triangle. A wider view of the patter also exposes the fulfilment of an inverse H&S pattern with 34.962 USD level serving as the neckline and 37.539 USD as the temporary breakout goal. Both the pattern structures hint at a proper accumulation scheme on a 4H chart, seeing how LTC value is also trending over its 50 and 200 DMA.

At the time of writing, LTC is creating a red candle as an indicator of a pullback scheme in the upcoming hours. In the event that it takes place, a repeated test of the lower ascending trend line of the triangle might become the most probable. It might be a substantial short chance towards the line, which might become prolonged further towards the 200 DMA, in the event that the pullback extension.