Litecoin Primed For 13% Rally Soon Upon Breaking Past This Level
Litecoin has demonstrated a consistently positive trend in recent weeks, reflecting a strong market sentiment. As the broader market has gained strength in recent trading sessions, Litecoin has managed to sustain its gains. The price of Bitcoin has surpassed $31,000 at present, resulting in an upward movement for other altcoins as well.
While Litecoin has not experienced significant changes in the past 24 hours, it has maintained a positive trajectory. On a weekly chart, however, the altcoin has surged by over 20%. This remarkable recovery began in June when Litecoin broke through the $70 price mark, and since then, the coin has gained more than 50%.
From a technical outlook, the Litecoin outlook aligns with the bullish sentiment. Both demand and accumulation indicators on the chart have remained high, suggesting the possibility of further gains. However, there is an important resistance to consider.
In the upcoming days, Litecoin is expected to experience a surge due to its halving event scheduled for 3rd August 2023. Additionally, the market capitalization of Litecoin has also improved, indicating an increase in demand for the cryptocurrency.
Litecoin Price Analysis: One-Day Chart
At the time of writing, LTC was priced at $106. Although the altcoin is below its resistance level of $108, this particular level is not the main obstacle.
The crucial challenge for Litecoin lies in gaining sufficient strength to surpass the $115 resistance, a level at which the coin has historically faced rejection.
In April of the previous year, Litecoin approached this level but could not sustain trading above it for the remainder of the year.
Conversely, if Litecoin fails to break through the $115 resistance, it could experience a decline toward the $103 support level. Further downward movement from this point would bring LTC below the $100 mark, indicating a complete invalidation of the bullish intent.
The price surge from the $90 level in Litecoin has significantly bolstered investor confidence. The Relative Strength Index (RSI) indicator reached the overvalued zone, indicating increased buying activity.
Although it retraced slightly from the overbought territory, it remained above the 60-mark, indicating sustained buying strength in the market.
Furthermore, the LTC price movement was supported because it remained above the 20-Simple Moving Average (SMA) line. This suggests that buyers have assumed market control and are driving the price momentum.
The Moving Average Convergence Divergence (MACD) indicator formed tall green histograms, indicating favorable buy signals for LTC. This suggests the potential for continued bullishness in the market.
Additionally, the Bollinger Bands on the chart were wide open, indicating increased price volatility. The upper band coincided with one of the resistance levels at $108.
This suggests that LTC will likely encounter price fluctuations and may face a barrier at the mentioned resistance level. The next trading sessions remain crucial for the altcoin.
Featured image from UnSplash, charts from TradingView.com