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Litecoin faces new resistance; who’s in control?

2min Read

Bullish momentum on lower timeframes could see LTC rally past key resistance at $93.

Litecoin approaches key resistance, momentum favors bulls

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • LTC bulls attempted to break $93 resistance level. 
  • Buyers dominated long/short ratio with 52.27% margin.

The short-term rally in the crypto market in the past 48 hours saw Litecoin [LTC] post gains of 7.9%. This spurred a firm rebound off the $85 support level with LTC trading at $90, as of press time.

Realistic or not, here’s LTC’s market cap in BTC’s terms

With Bitcoin [BTC] posting 3.1% gains within the same period and recapturing the $27k price zone, LTC could reach the April high of $102 with sustained bullish momentum.

Bulls rally on lower timeframe

Source: LTC/USDT on Trading View

Litecoin’s near-term price action on the four-hour timeframe strongly favored the bullish momentum. Between 8 May and 14 May, bulls found key support at the $80 support level and rallied strongly to touch the $93 resistance level. This rally broke the bearish lower high to signal a change in market sentiment.

Selling pressure at the $93 resistance level forced LTC to retest the $85 support level with bulls showing their strength again with a swift price rally to $90. The next challenge lies for LTC at $93 with bulls aiming to flip the resistance to support.

The on-chart indicators showed that significant demand for Litecoin could see bulls smash the $93 resistance level. The RSI jumped above the neutral 50 and stood at 61, as of press time. The OBV recorded a decent uptick in volume to highlight increased demand. The CMF also rose sharply and stood at +0.15 to hint at significant capital inflows for Litecoin.

An encouraging fact for bulls is that the $93 resistance level has been tested four times in the past ten days. A strong candle close above the level along with significant volume could see bulls push on for more gains. On the flip side, a downturn again by BTC will offer bears the opportunity to halt the bullish momentum.

Read Litecoin’s [LTC] Price Prediction 2023-24

Spike in active addresses hinted at rising demand

Source: Santiment

Data from Santiment revealed that LTC witnessed significant spikes in active addresses over the past seven days. This pointed toward the possibility of increased demand.

The demand for LTC was echoed on the long/short ratio. Buyers dominated in the short term with a 52.27% margin on the four-hour timeframe. Traders should continue to track BTC’s price action and developments around LTC that could impact the coin’s price.

Source: Coinglass


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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