LTC/USD Technical Analysis – 10th April 2014

As the bad news out of China and elsewhere continues to emerge, Litecoin, along with other Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term are taking a battering. However, there is a major support zone not too far away... where Litecoin may attain some respite.

Let us take a closer look at the LTC/USD chart on the Daily timeframe (click to expand):

The red horizontal line is the one that may indeed provide some support, for two main reasons.

1) It's already been tested before, on the 18th of December, 2013, circled in blue.

2) It's a psychological whole number, at 9.0.

We also have the Stochastics in oversold territory, although when the bears are this strong, it often doesn't mean much.

I doubt it will be long before price hits the support at 9.0, the question is how long will this support last, since if price manages to break 9.0, then I fear we could see falls on Litecoin, the likes of which we haven't seen since the start of the year, barring some major bullish piece of news for crypto currencies.