Assessing if Litecoin is on the verge of a breakout amid this bull run
Assessing if LTC has enough firepower to break through its immediate resistance amid strong bullish sentiment in the market.
- Litecoin saw a strong bullish resurgence amid the recent market rally.
- The current momentum and positive derivatives data suggest buyers can still push higher, but a close above the immediate resistance range is crucial.
Litecoin’s [LTC] recent uptrend has pushed the altcoin above its trendline resistance and into a potential breakout zone on the charts.
LTC was trading at around $88 at the time of writing, up by over 2% in the last 24 hours. The critical question is: Will the buyers maintain their momentum and target higher resistances, or are we set for a near-term setback?
LTC jumped above its EMAs to depict strong buying momentum
Over the past three months, Litecoin moved within an ascending channel pattern. Recently, it has broken above the pattern after witnessing massive buying pressure. During this rally, it closed above key moving averages like the 20, 50, and 200-day EMAs.
The altcoin has tried several times this week to break through a major resistance range around $89-$93.
Should the bulls manage a decisive breakout above $93, LTC could rally toward the next major resistance in the $100-$104 zone. On the other hand, a failure to breach this resistance could induce a pullback towards the support level around $76 or even lower towards the $72 zone, aligning with the near-term EMAs and immediate trendline support (white, dashed).
The RSI confirmed an ease in buying pressure as it reversed from its overbought levels and fell below its moving average. An inability to cross the RSI-based moving average can provoke a rather sluggish movement on the charts.
LTC Derivates data revealed THIS
Looking at derivatives data, there’s a somewhat positive outlook for LTC. Trading volume has surged by 76.14% to $1.14 billion, which shows that more traders are getting involved as the price increases.
Open interest has also increased slightly, suggesting traders are preparing for a significant move, whether that’s a breakout or continuing the current trend.
Read Litecoin’s [LTC] Price Prediction 2024–2025
The long/short ratio is nearly balanced at 0.9414, but it leaned more toward bullish sentiment on platforms like Binance and OKX. Top traders were betting on prices going up.
It’s also important to consider the overall market, particularly Bitcoin’s movements, as they greatly affect other altcoins like Litecoin. If Bitcoin continues to do well, it could help Litecoin push past the $93 resistance.
