LTC and DYDX: Altcoin Analysis for December 19, 2023
BTC has been trading within a broad sideways range between the support level of $40,200 and resistance at $43,600 for two weeks. Here's a market overview of the alternative cryptocurrencies Litecoin (LTC) and dYdX (DYDX) as of Tuesday, December 19.
Litecoin (LTC)
The trend on LTC's chart remains uncertain. The asset has almost completely offset the growth that occurred at the end of October with BTC's upward movement. For the past two months, Litecoin buyers have been unable to initiate significant growth to reach the yearly high.
Currently, the LTC is trapped between a support zone of $66-$68 and a resistance level of $72.3. If BTC can firmly stay above $43,600, Litecoin might break through the current resistance and move closer to the $74.2-$77.1 zone.
The initiation of a strong upward trend in LTC will be indicated by testing its local high of $79.5. Until then, the asset may face further corrections, possibly to the $63.2-$64.8 zone.
LTC chart on the H4 timeframe
dYdX (DYDX)
DYDX has also experienced a significant correction from its local high of $4.35. Currently, the asset trades near the support level of $2.68. If the correction persists, DYDX might fall to the buyer's zone between $2.15-$2.38 and test the psychological level of $2.00.
For continued growth, DYDX buyers need to break through the resistance zone of $3.28-$3.51 and secure a position above this range. This should occur with substantial trading volumes, indicating the movement's legitimacy. Then, the asset could aim to test the $3.94-$4.35 zone and potentially reach a new high.
It's crucial to consider fundamental factors, such as the significant token unlocking for private investors a month ago. They are likely to attempt to sell the coin profitably, potentially creating price pressure. Hence, buying DYDX on the spot market now appears to be a risky tactic.
DYDX chart on the H4 timeframe
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the price movement between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K – $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — 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 GN Crypto:
