Litecoin has been under the radar since the start of this bull cycle. The 10 year old cryptocurrency has been away from the buzz as DeFi has been the talk of the market. That hasn’t stopped investors from buying, LTC is up 550% in the last year. Although that seems like much, compared to other alt coins, it is not too impressive. LTC breaking resistance at $250 will set the stage for a try at its ATH of $420.
After a slow and steady rise from its March 2020 low of $25, LTC is testing an important resistance zone around $250. If this area can become support, LTC will see $300+ for the first time in 3 years. The $300 resistance level is also met with the top trend line of an ascending channel that has been respected for nearly 3 months.
LTC Price Analysis: Daily Chart
As a result of the W bottom formed on $165 support, litecoin has managed to gain over 50% in value recently breaking its 2021 high. The W bottom forming is a bullish reversal signal as over the last month, price has been held up by the bottom trend line of its ascending channel. This confirms buyers are still in the market and are looking to squeeze more gains out of the OG cryptocurrency.
If the $250 S/R zone fails to hold, expect the price of LTC to stabilize around its $228 support level. This wouldn’t be a bad thing if it can hold this support as this would be the setup of a retest of a previous resistance.
While looking at the Relative Strength Index, it is easy to spot that the RSI had a clear break of a 30 day trend line and tested it as support 2 days ago. This can set the rug for LTC’s 1 day RSI to reach overbought territory, which is where most of the gains can happen. Confirming this bullish view, the Stochastic RSI has been forming a bull flag over the value of 66 which is bullish indication. This bull flag has been forming for nearly 2 weeks which signals consolidation is happening before a potential explosive bull trend.
LTC Price intraday levels
- Spot rate: $256
- Trend: Bullish
- Volatility: High
- Support: $228
- Resistance: $256
