Altcoins benefit from Bitcoin Rallye – rollercoaster ride at DeFi-Token
After a mixed performance in the previous week, the vast majority of the old coins increase in value, thus following the price development of the crypto lead currency Bitcoin (BTC).
Any attempts by the bears to initiate a major correction in the price of Bitcoin (BTC) have so far come to nothing. The resulting price setbacks in many old coins are also being used to a large extent as opportunities to enter the market. This bullish basic tenor increases the chances for a Bitcoin Profit sustained rally in the market as a whole. Positive news about the increasing interest of other institutional investors in crypto currencies is also encouraging many investors to invest in crypto.
There continues to be a great deal of investor interest in the area of Decentralised Finance (DeFi). The prices of Sushi (SUSHI) and Aave (AAVE) continue to show high volatility and are again among the top performers this week with strong price premiums. In particular, a sustained stabilisation of the Bitcoin price above USD 18,000 should consolidate the positive development in the overall market.
After a slight consolidation including a retest of the previous week’s breakout level, the price of Litecoin may rise again this week towards its annual high. Although the LTC price did not manage to overcome the high at USD 93.92, the price is currently trading above the EMA20 (red) at USD 82.45 again.
Bullish version (litecoin)
If Litecoin is able to push through the resist at USD 84.97 in a timely manner, the resistance at USD 89.97 and the annual high at USD 93.92 move into focus. If this strong resist area is breached at the daily closing price, a rise to the 61 Fibonacci retracement at US$ 98.47 should be planned. If the overall market sentiment remains bullish in the coming days, a subsequent rise towards the 70 Fibonacci retracement at 108.36 US dollars is also conceivable. If the bulls manage to overcome this resistance level dynamically, the LTC price should rise to around USD 125.59 in the medium term. Only when this important resistance level is overcome at the end of the day will the maximum price target of 144.54 US dollars come into the view of investors. This is the high for the year from June 2019.
Bearish variant (Litecoin)
However, if the bulls do not succeed in lifting the LTC price above the resistance zone between 82.29 US dollars and 84.24 US dollars, a retest of the EMA20 and the weekly low at 77.46 US dollars is likely. If Litecoin slides below this support, another drop in price to around 71.73 US dollars is to be expected. If this support is also abandoned, a relapse to around 63.80 US dollars and 62.06 US dollars is conceivable. If the LTC-price slides below the pink support area dynamically as a consequence, a retest of the green support area consisting of EMA200 (blue) and horizontal support between 57.47 US dollars and 55.53 US dollars is likely.