It is impossible to feel the excitement of a price recovery without the anxiety of a sell-off. Litecoin community could be nursing a similar sentiment at the moment as the price pump over the past 24-hours should bring a little bit of hope back.
After a troubling week, LTC’s price jumped by 14.05 percent, with a trading volume of $4.39 billion over the past day.
Litecoin 12-hour chart
Litecoin and collective digital asset industry have faced a tussle between the bulls and bears in 2020. After the completion of a Cup and Handle pattern that began taking shape toward the start of November, Litecoin witnessed a bullish breakout on 30th January. Litecoin scaled at 44 percent in 15 days, reaching its year-to-date high of $84 on 14th February.
The depreciation began thereafter, and although another positive break was expected from the descending channel formation, the coin exhibited a busted breakout as the market began its descent on March 11th. Litecoin registered its year-to-date low of $24.53 on 13th March.
Since the collapse, the asset has been to demonstrate a period of recovery and at press time, the token remained just under the immediate resistance at $39.51.
Litecoin’s price may navigate in the following ways over the next week.
VPVR indicator suggested that Litecoin is currently traded in a range that had little to none trading activity over the past eight months. Hence, it is highly possible LTC would breach resistance at $39 and continue to trade between $39 and $43. A move under $39 after the 24th March may raise concerns of yet another pullback.
Bullish Trading Zone:
If the present rally continues to build momentum, Litecoin may easily breach resistance at $43 before the end of March, and continue consolidation between $43 and $48. The trading volume in this range has been constructive over the past eight months, according to VPVR.
However, 200-day Moving Average continued to act as resistance at press time, suggesting presence of bears in the long-term.
Bitcoin may continue to dictate
It is no secret that the collective industry had its hopes pinned on BTC to perform well at the moment. During a bull run, assets are able to take charge of their own rally with developments within their space but during a bear cycle, the asset with the highest market cap lays down the path.
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Bitcoin‘s correlation with Litecoin is 0.8755 at the moment, which is also the highest in 2020. It is fair to assume that a lot depends on Bitcoin’s movement for the next few days as the largest digital asset cultivates its own bullish rally.