BTCE:LTCUSD Litecoin / Dollar
As continues its rally, LTC has floundered for days since the failed #3 pump, seemingly for lack of sufficient buy , despite the bullishness in , which it usually tracks closely. But the divergence has created an apparent buying opportunity as LTC appears to be attempting to snap back to its previous track, closing the gap with . Previous high targets could still apply.
As there have been so many cries of wolf by MtGox promising the listing of Litecoin on their exchange, and that this card was played once more with a nebulous, somewhat cryptic announcement on their twitter account, and it was timed so perfectly with the Zynga announcement concerning bitcoin adoption by that giant online, social network gaming developer, this announcement that certainly sparked or helped to fuel the recent litecoin rally in sympathy with bitcoin's rally, (the card played strongly in the btc-e trollbox), can only produce increasing short term negativity for litecoin in the form of disappointment, distrust of the Litecoin listing announcement, some anger and disgust added to the previous disappointment distrust in which MtGox Litecoin listing announcements have resulted. This might provide for continued downtrending in Litecoin from this unnatural area we in at this time, and back into the appropriate channel from which Litecoin broke out from, and perhaps a retrace to the bottom of the channel, or a breakdown under that channel with a bit of over reaction to the MtGox propaganda card they played once again. A breakdown under the channel that we recently broke out of, which you have charted so well, might mean a correction down into the safe haven of the neutral $16 to $17 sideways consolidation channel we saw just after the $9.119 reversal bottom in Litecoin. And so we would retest the entire area, and in doing so as NVC, Novacoin is now trading in higher areas at just under $17, having pulled back a bit from it's recent rally highs, we could then see a more historical price action of LTC in relation to NVC as NVC typically outperforms LTC after corrections that bottom. If this happens we might say that the $9.119 LTC bottom is valid, and see NVC leading LTC up, with LTC bursting past NVC as is typical. The point being that LTC is in need of returning to the trading range of NVC. LTC like a child that skips ahead of the older issue, trips and falls, NVC picks LTC up, and then LTC joyously runs ahead once again.