LITECOIN UPDATE

FULL Altcoin Update: LTC (Litecoin)

Trading on News

If you haven't heard, there was an announcement hours ago that Walmart is going to accept Litecoin payments.

A few hours later, this announcement was found to be fake.

And this is exactly why you don't trade on news alone. It's unreliable, erratic, and always a surprise. You will have to be always on your toes — that's okay if you're full time trading, but if you have other concerns, good luck. In addition to that, news almost always triggers emotions — this is a recipe for disaster. In the case of LTC, I'm sure that there were FOMO (Fear Of Missing Out) emotions triggered, and some bought at the top or even in the middle. Yikes. Hope you are doing well at the moment.

You can however, pair this with another strategy to somehow offset its disadvantages — unfortunately, that will be another topic for discussion some other time.

LTC reacted nicely to the positive news, and likewise, to the sad and equally surprising revelation after. It printed a +31% gain from the opening price before the fact check, and ultimately ended the day in red.

The price action today is not as wild as yesterday. The good news is that LTC did not break the support of the 200EMA — in fact, the 200EMA has been retested since last month but it has been holding it nicely (so far).

Areas of possible support:

Any of the moving averages

$150 (minor)

$120 (minor)

$103

Areas of possible resistance:

$229 to $246 (LTC peaked at around $240 yesterday)

$333

$412

If you're thinking of opening a trade now near the support of the moving averages, be prepared in case it breaks — otherwise, not a bad idea at all. Or, you can always wait for some confirmation.