- Litecoin’s current outlook shows a brewing bullish momentum.
- Despite the presence of market bears, the propensity for long-term upsurge remains high per technical indicators.
Litecoin (LTC) is currently exhibiting a bullish stance with over a 7% price surge in the past 24 hours pegging the coin’s market value at $61.86 per data from Marketcap. Still, the coin has been unable to clear a higher timeframe resistance zone.
Since mid-August, just after the Litecoin halving event, the price of LTC has remained in the same range with no attempt to push through and break out of the resistance level at $75. Markedly, Litecoin has a reasonably high correlation with the leading cryptocurrency Bitcoin (BTC) and this indicates that the former has the potential for more price rally, a trend it hopes to capitalize on moving forward.
Previously, market observers suggested that the LTC token could climb as high as $75 before facing a bearish resistance. This turned out to be unrealistic in the short term owing to the buyer’s inability to maintain the surge with the price spiraling down to around $63 in a rude protest.
Notably, this week has been favorable to altcoins with a number of them including LTC seeing a significant price surge as well as an increase in buying pressure. A handful of LTC metrics suggest that the coin is up for more bull trend.
Litecoin’s On-balance volume (OBV) is exhibiting a steady uptrend and the Relative Strength Index (RSI) was above 50 to also reflect an uptrend and bullish momentum. Its 4-hour daily time frame structure is equally portraying a positive momentum.
Technicals Points to Imminent Litecoin Surge
In the past, LTC rose to around $72.89 before dropping encountering an 8% correction shortly after to $67.07.
Amidst this significant fall, the Fibonacci retracement levels suggest that there is no need for worry. Per data from Coinalyze, a bullish sentiment was perceived to be just around the corner considering the jump in LTC price and Open Interest (OI) between October 21 to October 24. However, the 8% fall led to a drop in OI and this still wasn’t a cause for alarm as such quick fluctuations are not uncommon in the market.
But in the past few weeks, the spot Cumulative Volume Delta (CVD) has been showing some strong downward movement and this is largely considered as being abnormal. A look at the CVD clearly indicates that the recent rise to $73 was triggered by the futures market and not the spot market.
This further underscored the imminence of a reversal. Also, the drop from $73 saw the liquidation of some long positions and the levels of this liquidation on the charts suggest that millions of dollars worth of short positions could get liquidated in the $70-$72.15 zone. With this price range marked as the liquidation point, traders will generally keep an eye out and we may expect a resistance at this point.
In addition, a price rally in Bitcoin above $36,000 levels is equally going to deliver a surge for LTC and possibly push it toward $75 to $80 in 2024 by snatching it from any potential bear grip.
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