Litecoin has a strong start of the trading week and month and looks poised to make a new all-time high. It bounced from strong dynamic support, kept the series of higher lows, and now gets ready for a new higher high.
The previous dip into support was caused by general weakness in the cryptocurrency market triggered by a massive drop in the price of Bitcoin. The main cryptocurrency lost over 15% in less than one trading day, dropping from $64k to $47k, but found support and bounced back strongly. Litecoin did exactly the same, only that the bounce appears even stronger than in the case of Bitcoin.
Moving forward, investors will likely remain bullish on cryptocurrencies against the dollar as recent data points to higher inflation in the United States in the months to come. Therefore, if the crypto assets are to offer a hedge against inflation, this is the best time to prove it.
Bulls may want to stay on the long side while the price remains above the rising trendline. The series of higher highs and higher lows points to more strength ahead. To trade it, bulls may want to go long at market and place a stop-loss order at the previous higher low, while targeting a risk-reward ratio of minimum 1:2.
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