Following this month’s global market meltdown, Litecoin LTC found support some weeks back and slowly climbed back as it experienced low volume inflow. While struggling to push higher, it encountered resistance and lost 5% today.
Despite facing a lot of hurdles in the past two weeks, LTC appeared to be gaining traction on the lower timeframe as it gradually gears up for another rally.
From the look of things, the buying volume seems low at the moment but we can expect a notable surge in volatility when the volume level is high. The recent rejection at $88 has brought a slight pullback in the market. And as a result, the price is now down on the day.
However, the future looks promising for Litecoin. Looking at the market structure from where it initiated a surge at $70 in late February, it has technically retested the level during this month’s crackdown.
And as shown on the daily chart, Litecoin is stylishly rising back as it gathers liquidity on the way up. A recovery to the previous high could trigger a massive surge if the price breaks out. Losing this month’s low could lead to more collapses in the future.
But as it stands now, Litecoin appears to have finished selling on the short-term perspective. Even if the price pulls lower in the next few days, we can expect more positive actions to occur in the coming weeks.
Litecoin’s Key Level To Watch
Now that the bears are showing interest, the immediate support to watch more drops is $77.2, followed by the $70.5 level. A break below this support could activate a new sell-off to $68 and potentially $63.
Above the weekly $88 high lies the $93.1 resistance. The next key resistance to watch is $100. Higher resistance levels to consider are $106 and $112.8.
Key Resistance Levels: $88, $93.1, $100
Key Support Levels: $77.2, $70.5, $68
- Spot Price: $81.7
- Trend: Bullish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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