Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Litecoin [LTC] maintained its upward momentum, flipping the $93 resistance to support. LTC’s 6.5% gains in the past 24 hours saw it achieve a session close above the $93 resistance level.
Bulls would be looking to build on these gains by targeting the resistance level of $102 last achieved in mid-April, especially with Bitcoin [BTC] making another foray into the $27k price zone.
LTC buyers extend bullish streak
Litecoin extended its two-week-long bullish dominance by shooting past another resistance level. LTC claimed the $93 resistance level with four 12-hour bullish candles in a row. This came after bulls had successfully defended the $80 psychological support level on 14 May and flipped the $85 level to support on 25 May.
An earlier price report highlighted that the $93 resistance level had been tested four times in the past 10 days and a break above the level was inevitable, due to the significant demand.
The on-chart indicators suggested a strong continuation of the bullish momentum. The Relative Strength Index (RSI) remained above the neutral 50 and stood at 65, as of press time. The On-Balance Volume (OBV) highlighted the strong demand with a 1.42M uptick in volume over the past 24 hours to maintain its upward trend.
Another session close above the new support level at $93 along with significant volume could see bulls push on for more gains. However, bears would be looking to stall the bullish momentum with a price reversal.
Rising active addresses spur buyer’s confidence
The daily active addresses experienced a sharp rise from 5 May. Data from Santiment revealed that daily active addresses were over 2.4 million, as of press time. This could boost the bullish momentum with a large trading volume accelerating buyers’ efforts.
The 90d mean coin age has also been on a steady upward climb since 26 May. It hinted at reduced LTC movement between addresses and increased accumulation.
Read Litecoin’s [LTC] Price Prediction 2023-24
Similarly, the Market Value to Realized Value (MVRV) ratio showed that LTC was in the overvalued territory. The MVRV stood at 39.04%, as of press time. This showed that LTC buyers were making significant gains.
Traders should closely monitor the market conditions and Bitcoin’s price action, as these could impact LTC’s price in the mid/long term.