Examining Litecoin’s [LTC] chances of reaching $130 after bullish breakout
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The market structure of Litecoin was bullish.
- The reaction at $95 and the attempts to push above $100 meant bulls have the upper hand.
Bitcoin [BTC] saw a small move upward from $22.8k to $23.2k. The Federal Reserve Chair Jerome Powell said 2023 could see a decline in inflation, although it could be a process that takes “quite a bit of time.” It remains to be seen whether the market views risk-on assets more favorably in the next couple of weeks.
Realistic or not, here’s LTC’s market cap in BTC’s terms
The market reaction on 7 February suggested that crypto assets could see more gains in the coming days. Litecoin [LTC] has bounced from the $95 region of support over the past few days, and looked set to break out above $107.
Litecoin knocked on the doors of the $102.5 resistance once more
On the four-hour chart, Litecoin bounced from a bullish order block formed at $95. In doing so, it closed an H4 session above $100, but faced some short-term resistance at $102.5. At the same time, the $100-$106 area marked in red was a bearish order block on the daily timeframe from early May 2022.
This meant that even though the lower timeframe market structure was bullish, Litecoin could take some time to conquer this region. This belt of resistance also lay close to the $100 psychological level of significance.
The RSI saw a boost over the past couple of days and stood at 59.9 to show strong bullish momentum. The rising OBV showed steady demand behind the asset, which is likely to fuel the rally further.
Above $106, $115 and $132 could pose stiff resistance to LTC bulls. Therefore, these levels could serve as take-profit areas, while a bullish retest of the $100 zone could be used to enter long positions.
How much is 1,10,100 Litecoin worth?
Dwindling spot CVD suggested a phase of distribution above $90
While the rising OBV showed bullish strength, the H1 spot CVD was in decline throughout February. This coincided with LTC’s rejection from $102.5 and its pullback to the $94.8 mark. By itself, the metric suggested a distribution phase was in progress.
However, Open Interest and the predicted funding rate disagreed. The rise in OI, alongside these prices, showed capital entering the market and bullish intent. The positive funding rate also underlined expectations of further gains for Litecoin.