Litecoin (LTC) Technical Analysis: LTC Breaks $95 as Crypto Market Rebounds
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Litecoin is standing out as the best performing crypto project among the the top 10 today, reporting double digit gains against the US dollar and a 4.56% lead over Bitcoin.
Over the last 24 hours, more than $15 Billion has surged back into the crypto market after yesterday’s correction, and has helped Litecoin’s price take back the $95 level.
Will bullish traders be able to maintain this new momentum and push LTC towards the psychological $100 level? Let’s take a look.
Litecoin Price Analysis
On the 4H LTC/USD chart we can see that the asset is continuing to track sideways inside a channel between the 0.5 and 0.235 fibonacci levels ($86.15 and $97.43 respectively).
During the early hours of this morning (01:00 UTC+1), bullish traders were able to break free of a downtrending resistance (white dashed line) that had been holding back the price action for the last 8 days. From there, a bull rally ensued as confidence grew behind LTC, which has so far carried the asset up 8% in 8 hours.
This uptrend has caused the 12-MA on the MACD indicator to break over the signal line, with increasing buying volume now appearing on the histogram. This is a promising sign that momentum has bullishly reversed
The RSI line is also spiking towards the overbought region above, as a result of the recent rally.
Looking ahead, we can see that the 0.236 fibonacci level at $97.43 is likely to create strong resistance for Litecoin bulls, as they make their move towards the fabled $100 level.
If buyers can break out of the channel however, then the $100 should be easily achieved as there aren’t any resistances standing in between.
From there the next resistances for LTC are likely to be around the $104 and $107 levels.
If the channel resistance holds against the current uptrend, then we could expect to see the asset return on to the 0.382 fibonacci level at $91.19, before recovering.