Connect with us
Active Currencies 13541
Market Cap $2,766,722,221,897.40
Bitcoin Share 49.80%
24h Market Cap Change $-0.78

Litecoin eyes $53 target point

2min Read

Share this article

Litecoin’s overall technicals have remained bearish despite multiple upward swings and have reverted to its previously breached points. It was trading close to the $50 psychological level following the latest surge that catapulted the coin.

Litecoin 12-Hour Chart:

Source: LTC/USD on TradingView

The formation of a symmetrical triangle pattern on the 12-hour Litecoin chart was indicative of a potential breakout that could go either way. After a crash, 50 daily moving average [Pink] and 100 daily moving average [Blue] sustained a bearish crossover in April. However, following consequent surges, the two DMAs started converging and were observed to be treading close. This indicated that a potential bullish crossover could be in the inkling.

In addition, both 50 and 100 DMA slid above the Litecoin candles. This further validated the bullish presence.

Source: LTC/USD on TradingView

MACD was also above the signal line, which indicated a bullish phase for the silver crypto.

Scenario 1:

A bullish breakout in the near term was supported by the daily moving averages below the price candles. In this case, the coin could climb to key resistances at $53.88 and $63.14, points that were depicted to have high trading activity by the VPVR indicator.

Scenario 2:

A bearish breakout is highly unlikely as the coin found critical support at $40.35 and $35.79 as depicted by the VPVR indicator.

Correlation:

Source: Coin Metrics

Litecoin is the silver to Bitcoin and has historically been responsive to the king coin’s price action. Currently, BTC-LTC correlation coefficient stood at 0.86. Bitcoin’s rally will be able to drive Litecoin’s up to climb significant points that have acted as resistance for quite some time.

Conclusion:

Litecoin’s potential breakout on the upside could help reclaim resistance points at $53.88 and $63.14. The price candles were firmly supported at points $40.35 and $35.79.

Share

Chayanika is a full-time cryptocurrency journalist at AMBCrypto. A graduate in Political Science and Journalism, her writing is centered around regulation and policy-making regarding the cryptocurrency sector.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.