The recent surge in the price of Litecoin (LTC) has propelled it to the significant psychological level of $100. This upward movement has provided a bullish boost to the altcoin and allowed it to register gains in recent trading sessions. However, despite this bullishness, the price of LTC remains within bearish territory, indicating ongoing downward pressure. Reclaiming the $100 price mark is crucial for sustaining a bullish trend.
In the past 24 hours, LTC has experienced a rally of nearly 17%, reflecting its positive performance over a longer period on the weekly chart. It’s worth noting that Litecoin’s halving event is just a little over a month away, and historically, the price of the asset tends to increase before this event. However, due to the fluctuating nature of Bitcoin, which often influences major altcoins, LTC might experience slight depreciation.
While significant depreciation is less likely as long as LTC maintains its price above the local support level, a sustained increase in demand for the altcoin is necessary to ensure continued gains on the daily chart. The market capitalization of LTC has also increased, indicating bullish momentum in the market.
When writing, Litecoin (LTC) was trading at $97.81. After reaching the $100 mark, LTC has been steadily gaining in price. However, despite the bullish momentum, Litecoin remains within a crucial zone that is bearish and could potentially reverse the gains. This bearish zone, ranging from $94 to $103, has acted as a reversal point for LTC in previous trading sessions.
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Additionally, Litecoin has entered the excess selling zone multiple times, where the price fluctuated between the upper and lower bands of the bearish region. The overhead resistance levels are $100 and $103, and in case of a decline from these levels, the price could drop to $94 initially, followed by a potential further decline to $90.
On the technical analysis front, Litecoin was approaching overbought conditions, with the Relative Strength Index (RSI) above the 60 mark. This indicates that buyers had gained market control, suggesting a higher demand for LTC compared to selling pressure. The increased demand was also reflected in the price, as it climbed above the 20-Simple Moving Average (SMA) line, signifying that buyers were driving the price momentum in the market.
As long as Litecoin maintains its price above the 20-SMA, specifically around the $87 level, the bullish sentiment is expected to persist. Additionally, Litecoin formed a strong buy signal in line with increased demand, with the Moving Average Convergence Divergence (MACD) indicator showing a green histogram. This suggests a strong bullish momentum and strength in the LTC market. The Chaikin Money Flow (CMF) indicator also displayed capital inflows outweighing outflows, indicating more capital inflows than outflows at the given time.
In conclusion, the recent surge in the price of Litecoin has shown positive performance and bullish momentum for the altcoin. However, it is important to note that the price remains within a bearish zone and could potentially reverse gains. Reclaiming and sustaining the $100 price mark is crucial for a continued bullish trend. The upcoming halving event for Litecoin adds to the bullish narrative, although slight depreciation may be influenced by Bitcoin’s fluctuations. As long as demand for Litecoin remains strong and the altcoin maintains its price above key support levels, the bullish sentiment is expected to persist. Technical indicators also support the bullish outlook, with increased demand and strong buy signals.
