Litecoin’s recovery might face resistance at the crucial $50 mark
Litecoin’s value against the US Dollar saw recovery following the recent market dip. At press time, LTC was priced at $46.2 after posting minor gains of 0.02% and registered a market cap of $2.92 billion, according to the data from CoinMarketCap. Despite signs of recovery, the question still remains if the latest bullish sentiment can prompt breach of significant resistance levels.
LTC 4-Hour Chart:
LTC’s 4-hour chart exhibited the much-needed bullish breakout following the formation of a falling wedge pattern. The current market sentiment could potentially drive the silver crypto’s price to climb close to its psychological resistance point at $50. A stronger bull run could lead the price all the way up to its second resistance level at $54.
Furthermore, MACD indicator also underwent a bullish cross-over following the breakout to the upside. Despite RSI indicating an uptick, for the bull run to gain prominence, it should cross 50 median which has been breached only twice this month and the coin to achieve significant upward momentum.
Moving Averages paint a bearish picture
The moving averages did not appear to be converging and continued to tread above the candles on the 4-hour Litecoin chart. This indicated that the current bullish breakout might face severe resistance at the crucial $50 point. Additionally, 50 moving average was below the 100 moving average. This could possibly mean a weak bullish momentum for the coin, not enough to surpass previously breach resistance levels.
Conclusion: bullish breakout could find resistance
While a trend reversal was not likely, the latest bull run might not lead to a potential breach in crucial resistances.