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
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.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!
Image Source: winst2014/123RF // Image Effects by Colorcinch