As altcoins continue to lose momentum amid the latest fall, Litecoin found solid ground and bounced with a double bottom. A strong close above the previous high should send the bulls back into action.
The steady contraction in Litecoin’s price reveals a low buying volume since it rejected the $50 level in August. The bears tried to step back in action but their commitment was not enough to set the market on a low.
However, the trading landscape is likely to change soon as the crypto formed a new bullish pattern on the 4-hour chart. A potential upward movement should be expected in the next few days. As we can see on the daily chart, the buyers are still taking charge.
Meanwhile, this latest price recovery was supported by the $68 level that stood as support during the week. The buying volume remains low on the day but a surge above the previous weekly high should validate a short-term shift in the market structure.
Technically, the bears are off the market. If they find their way back in, they must retake the current weekly low before considering a drop. Losing it could lead to a leg down capable of rolling back gains.
There’s nothing much to expect until a surge occurs. Nevertheless, the asset has seen a notable increase since the price recovered months back.
Litecoin’s Key Level To Watch
Source: Tradingview
Even if the price surges higher, the major obstacle for the bulls lies at the $74 and $77 resistance levels. If they overcome it, the $80, $84 and $89.6 levels would be the next resistance to watch for a test.
A drop below the holding $68 support could trigger a crackdown to the $64 support. Failure to bounce back from there could result in a rollback to the $60 support.
Key Resistance Levels: $77, $84, $89.6
Key Support Levels: $68, $64, $60
- Spot Price: $69.6
- Trend: Neutral-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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