Litecoin Trading- LTC/USD Technical Analysis, Aug 27: Litecoin also recovering, but will it last?

Litecoin (LTC/USD) is following in Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term's footsteps to recovery- sort of.

After bottoming out at $3.33, Litecoin proceeded on a rally that culminated in its gaining 86% to a peak of $6.19 5 days ago. Since then, it's been a roller-coaster ride. From the peak, it fell all the way back to $4.67 in 48h, a loss of nearly 25%. From there, the general trend has been upward, two steps forward, one step back.

Unlike Bitcoin's recovery, which has taken a fairly smooth, gradual form, Litecoin's has been choppy. Upswings have been on the scale of 10% within 1-2h, with retracements of about 50%. Minutes ago, the price suddenly dropped by 6% within an hour, the coin now trading at $5.54 on BTC-e.

Indeed, Litecoin recoveries have been superficial during its 7-month long descent. During Bitcoin's May rally, in essence a recovery from its April sell-off, Litecoin stagnated. Its most recent foray below $7 came after its earlier recovery to $9 gradually lost steam over several weeks and its bleeding back to previous lows.

Currently, it is trading at a 21% discount to its 50-day moving average, now down to $6.91. Versus Bitcoin, which has been stable, it has slipped back to 0.0107.

There is some reasonable short-term support in the $5.10-5.30 range. Should this be broken, look for history to repeat itself and new lows established 4-6 weeks from now.