Litecoin has been riding a steady upswing in recent times, indicative of buoyant market sentiment. Amid the broader market’s improved vigor in recent trade periods, Litecoin has successfully maintained its upward momentum. Bitcoin’s price currently topping $31,000 has spurred bullish trends for its altcoin counterparts.
Although Litecoin’s change over the past day remains minimal, the currency has held to its upward trajectory. A look at the weekly graph reveals the altcoin’s impressive rise of over 20%. The recovery started back in June when Litecoin breached the $70 price level, since which, it has seen an increase of more than half its value.
The technical analysis paints a promising picture for Litecoin, in line with the bullish sentiment. The chart’s demand and accumulation indicators have held strong, suggesting the possibility of future growth. Nevertheless, a critical resistance point needs consideration.
In the imminent future, Litecoin is predicted to witness a surge due to its halving event slated for August 3rd, 2023. Additionally, Litecoin’s market capitalization reflects a significant improvement, hinting at heightened demand for the digital currency.
At the time of writing, LTC’s valuation stands at $106. Despite currently trading beneath the resistance level of $108, this particular hurdle is not the principal concern.
The primary test for Litecoin involves accumulating enough momentum to overtake the $115 resistance, a level where the coin has previously met strong opposition.
In April of the prior year, Litecoin neared this level but failed to maintain trading above it for the remainder of the year.
On the other hand, if Litecoin struggles to breach the $115 resistance, it may see a pullback towards the $103 support mark. A further slump from here could push LTC below the $100 threshold, signifying a total reversal of the bullish sentiment.
The price jump from the $90 level in Litecoin has significantly boosted investor morale. The Relative Strength Index (RSI) indicator entered the overvalued zone, reflecting heightened buying activity.
Though it slightly pulled back from the overbought zone, it stayed above the 60-mark, indicating persistent buying pressure in the market.
Moreover, the LTC price momentum found support as it continued to stay above the 20-Simple Moving Average (SMA) line. This signals that buyers have the reins of the market, driving the price momentum.
The Moving Average Convergence Divergence (MACD) indicator produced tall green histograms, generating favorable buy signals for LTC. This indicates a possible continuance of bullishness in the market.
In addition, the chart’s Bollinger Bands remain well spread, signaling increased price volatility. The upper band lines up with one of the resistance levels at $108.
This suggests that LTC might face price fluctuations and hit a stumbling block at the aforementioned resistance level. The upcoming trading sessions are pivotal for this altcoin.