ADA and LTC: Altcoin Analysis for July 20, 2023
BTC has been trading sideways for over a month now, without any major trend shifts. Here's our breakdown of the market conditions for Cardano (ADA) and Litecoin (LTC) cryptocurrencies.
Cardano (ADA)
ADA has been exhibiting a local uptrend since June 10. Currently, its price is consolidating within the support zone of $0.285-$0.307 and the resistance level of $0.337. A crucial breakthrough above the range of $0.356-$0.382, accompanied by sustained support, would signal a potential end to the overall downtrend.
In case of a correction, ADA may potentially drop to the $0.26 level. Considering its strong correlation with BTC and Cardano's aggressive response to the main cryptocurrency's downturn, ADA may reach a new yearly low below the $0.22 mark.
ADA chart on the H4 timeframe
Litecoin (LTC)
Litecoin has been on an upward trend for the past year. Currently, the LTC price is experiencing a significant surge as we approach the upcoming halving event, scheduled for August 2 (in 13 days).
The critical support zone lies between $86 and $92. We can expect a response from buyers in this range, potentially leading to a continuation of the uptrend towards resistance levels at $100, $104, and the sellers' zone of $107-$115. If there are no major changes in the BTC chart, updating LTC's high becomes the primary scenario.
In the event of a correction, LTC could potentially test the $81 level and find additional support within the range of $74.0-$79.4.
LTC chart on the H4 timeframe
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the Gagarin News editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) β a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) β the movement of price between support and resistance levels, without going beyond the given range.
Π β simplified designation of one thousand dollars of the asset price (for example, 23.4K - $23,400).
Gray range on the chart β a support zone.
Red range on the chart β a resistance zone.
Correlation β the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from Gagarin News:
