The recent surge in Litecoin (LTC) price caused it to hit a significant psychological level of $100. This upward move has provided a bullish boost and enabled the altcoin to post gains in recent trading sessions.
However, despite this bullishness, the price of LTC remains within bearish territory, indicating continued downward pressure. Winning back the $100 price tag is crucial to sustaining a bullish trend.
In the past 24 hours, LTC has experienced a nearly 17% rally. On the weekly chart, the altcoin has maintained double-digit gains, reflecting its positive performance over an extended period of time.
It’s worth noting that the Litecoin halving event is just over a month away. Historically, the asset’s price rises before this event.
However, due to the fluctuating nature of Bitcoin, which often affects major altcoins, LTC may experience a slight drop in value.
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 needed to ensure sustained gains on the daily chart. LTC’s market cap has also increased, indicating bullish momentum in the market.
Litecoin Price Analysis: One Day Chart
At the time of writing, Litecoin (LTC) was trading at USD 97.81. After reaching the $100 mark, LTC has steadily increased in price. However, despite the bullish momentum, Litecoin remains within a crucial zone that is bearish and could potentially reverse gains.
This bearish zone, indicated in red, extends from $94 to $103. In previous trading sessions, LTC has pulled back when attempting to revisit the USD 103 level. The $94 mark has also been a turning point in recent months.
In addition, Litecoin entered the oversell zone the maximum number of times, where the price fluctuated between the two (upper and lower) bands of the bearish region.
The overhead resistance levels are $100 and $103. In case of a decline from these levels, the price may initially fall to $94, followed by a possible further drop to $90.
Technical analysis
In terms of demand, Litecoin (LTC) was approaching overbought. The Relative Strength Index (RSI) rose above 60, indicating that buyers had taken control of the market. This suggests 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. This means that buyers drove the price momentum in the market and pushed it higher.
As long as Litecoin (LTC) maintains its price above the 20-Simple Moving Average (SMA), indicated by the red line on the chart, especially around the $87 level, bullish sentiment is expected to continue.
Litecoin (LTC) formed a strong buy signal in line with increased demand. The Moving Average Convergence Divergence (MACD) indicator showed a green histogram indicating a new buy signal. This suggests strong bullish momentum and strength in the LTC market.
In addition, the Chaikin Money Flow (CMF) indicator showed that capital inflows exceeded outflows. The indicator was above the half line, indicating that more capital was flowing in than was flowing out at that time.
Featured image of UnSplash, chart from TradingView.com
