The Litecoin(LTC) price displays V-top rejection following the $124 resistance fake out on April 5th. The downfall registered a 15.5% loss and sank the coin price back to $100 bottom support. The sustained buying would allow buyers to push altcoin above the $141 resistance. zone
Key points
- LTC chart provides a strong accumulation zone at $100
- The 50-and-200 DMA is nearing a bullish breakout.
- The intraday trading volume in the Litecoin coin is $809.3 Million, indicating a 12% hike.
Source- Tradingview
The failed attempts from LTC buyers to sustain above the $103 resistance resulted in a resistance fakeout. This bear trap forced liquidated aggressive buyers who bought the $103 breakout. The sellers continued to pressurize the coin price and dumped it to the $100 support zone. Since last quarter the LTC price has bounced back from this support, suggesting a downtrend bottom.
On April 13th, the altcoin rebounded from the bottom support level($100), initiating a new bull cycle. The recovery rally has surged 10%, charging straight to immediate resistance at $120. Therefore, buyers offer a bullish breakout and sustainability above the overhead resistance; the coin price will rise 16% to hit $141.
Alternatively, if the sellers pull the LTC price back to $100 support, the crypto traders can reaccumulate the coin with a stop loss at $89.6.
Technical indicator
Bollinger band- the indicator’s lower band bolstered a bullish reversal from the $100 mark. However, the indicator moving sideways accentuates a short-term rise.
DMA- The declining SMAs (20, 50, 100, and 200) indicate a bearish trend for the LTC/USDT pair. However, a possible crossover between the 50 and 100 SMA could encourage additional buyers from traders.
- Resistance level- $121 and $140
- Support levels- $100, and $90
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/litecoin-price-analysis-ltc-price-entering-range-bound-rally/