As Bitcoin temporarily paused its rally, Litecoin showed strength and posted a small gain today. This led the bulls back on track with a total of 12% gains in three weeks. Currently, it appears gearing up for a surge.
Litecoins’s volatility has been a bit low for the past few weeks, causing a slowdown in the upward movement. The current buying volume is insufficient to sustain pressure on the daily.
From a technical perspective, the crypto is gathering liquidity for a big price movement. Looking at the latest setup on the daily chart, the price is on the verge of breaking out of a weekly resistance of $75.
Even though the daily volume indicator remains flat since the price dropped from $115 in July, LTC is likely to recover towards August’s high. Meanwhile, the market structure appeared to be struggling since it bounced off $56 a few months back.
It is important to note that Litecoin is maintaining a higher high and higher low pattern on the daily chart. Compared to other altcoins, Litecoin has not seen much recovery since it bounced back in mid-August. However, the price is up 40% ever since
If Litecoin follows Bitcoin’s price pattern in the next few days, it is likely to witness a massive surge in volatility. Regardless of the above, the trend is in favour of the bulls on the chart.
Litecoin’s Key Level To Watch
Source: TradingView
On the daily chart, LTC bounced off $70 and now rising towards the $76.76 resistance level, where it initiated retracement last month. An increase above that resistance should bring a quick recovery to $80.5 before tapping August’s resistance of $85.
If a drop occurs, the $70.8 level should provide support. Otherwise, a crack there could send the price to a key support of $66 and perhaps $62 in the long run.
Key Resistance Levels: $76.76, $80.5, $85
Key Support Levels: $70.8, $66, $62
- Spot Price: $74
- Trend: Bullish
- Volatility: Moderate
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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