Litecoin: Bulls sail past $80 – more gains ahead?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Bullish momentum flipped $80 level to support.
- Rising mean coin age hinted at more upside for LTC.
Bitcoin’s [BTC] rally to the $30k price zone rippled across the crypto market with altcoins riding on the bullish momentum created by the king coin.
Realistic or not, here’s LTC’s market cap in BTC terms
Litecoin [LTC] hit the 200 million total addresses milestone ahead of the much anticipated halving event and this translated to solid gains on its price chart. Rising prices for LTC over the past three days took it above the $80 psychological zone.
With the market recovering from June’s regulatory fire, can LTC go even higher?
Bulls are back in the game
Litecoin’s descent to the March low of $72 on 14 June sparked fears of a southward move for LTC, due to the critical nature of the level for bulls. However, the strong buying pressure at the $72 support level saw a mild price rally. Despite the price rally, buyers struggled to break the lower low of the bearish swing.
Leveraging on the recent bullish market sentiment, buyers finally pushed past the bearish lower low. Two strong bullish candles on the 12-hour timeframe flipped the $80 psychological level to support. The continuation of the bullish momentum took LTC past the $85 resistance level with price trading at $86.5, as of press time.
The Moving Average Convergence Divergence (MACD) bullish crossover highlighted the strength of the bullish momentum. Also, the Relative Strength Indicator’s (RSI) strong upward surge showed the significant demand behind the price rally.
The ideal scenario for Litecoin bulls will be a build-on from the $85 level with the $97 critical resistance level in close proximity. However, bears would be looking to reverse the bullish momentum around the $85 – $90 price level.
How much are 1,10,100 LTCs worth today?
Buyers bolstered by rising mean coin age
On-chain metrics from Santiment supported the continuation of the bullish momentum. The 90d mean coin age’s steady rise since 10 June hinted at dwindling LTC movement between addresses and increased accumulation.
Similarly, the 30d Market Value to Realized Value (MVRV) ratio showed that LTC was in the overvalued territory with a reading of 10.99%, as of press time. This showed that LTC buyers were making moderate gains on their holdings.
Combined together, the overall picture showed bullish strength. Traders should closely monitor Bitcoin’s price action, as further gains for BTC could impact Litecoin’s price in the mid/long term.