Cryptocurrencies have turned bearish in the second half of this week after turning quite bullish in the first 2-3 days. The crypto market resumed the uptrend which started last month, after retracing lower or consolidating for two weeks, as traders did some profit-taking. Although after the considerable bullish momentum in the last few days, cryptocurrencies retreated down on Wednesday, after some profit-taking once again. But this has opened up some good buying opportunities, so let’s see where Terra Luna and Litecoin stand now.
Terra Daily Chart Forecast – Buyers Still In Charge Even During the Retreat in LUNA
Terra Luna is preparing to burn 9% of the total LUNA coins, which should bring deflation to the network, at a time when inflation has gone rampant everywhere. This has turned investors and the public to cryptocurrencies and with the coin burning by Terra, more people are going to turn into this cryptocurrency. This is one of the reasons for keeping the trend bullish in LUNA/USD.
Another reason for the rally is the 160 projects to be launched on Terra LUNA next year, which has attracted a lot of interest. As a result Terral LUNA has increased from around $5 in August to $55 earlier this week. The 50 SMA (yellow) has been acting as support during the uptrend, while now the 20 SMA might help as well.
In the last several days we have seen a retreat in the crypto market as profit-taking gets underway after the surge, but LUNA has been holding better than most of the market. The retreat has been small and judging by the price action we think that it might as well be over. But, we would like to see the price reach the 50 daily SMA before considering going long.
Litecoin Daily Chart Forecast – LTC Not Retreating Lower
Litecoin is trading well above the previous resistance at $235
Litecoin has sprung back to life all of a sudden after being boring for a long time. It was trading in a tight range below the 200 daily SMA (purple) but the price moved above it and in the first two days of this week, we saw a surge in LTC/USD , which took the price from around $200 to almost $300. The climb has stopped in the last three days, but while the market has retreated lower Litecoin is consolidating gains. In fact, it is attempting to move higher, which shows strength, but for now it is trading sideways.
Litecoin’s Visa debit card for everyday payments in LTC has increased the demand for Litecoin. The Commonwealth Bank of Australia is also offering users the ability to buy, sell and hold LTC now. These event have turned the sentiment positive for Litecoin, which will likely resume the bullish trend again after the retreat in the crypto market is over. So, those who have bought Litecoin better keep their trades open.