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The so-called early Bitcoin (BTC) spinoff that is Litecoin (LTC) has been performing pretty well these past few days as investors are gaining confidence with the said cryptocurrency. Analysts stated, however, that LTC has taken a rather tricky path right after a breakout coming from a bullish trend.
Litecoin’s performance
On Thursday, Litecoin was trading at $185.33 (08:38 GMT) which is up by 11.42%. It was even deemed as the biggest one-day percentage gain since September 3. Also, LTC’s price hovered over between $173.54 and $185.87 over the past 24 hours.
It’s also worth noting that in the past seven days, Litecoin has been observed to surge in value where it gained 23.53 percent. At the time of publication, LTC is priced at $178.32 – which is down by 1.46 percent alongside a 24-hour trading volume of $3.66 billion.
LTC analysis
As mentioned earlier, Litecoin crossing a tricky path after a breakout from a bullish trend. Cryptocurrency pundits highlighted that a daily close above the confluence of the 50-Simple Moving Average (SMA) alongside the $170 ceiling would allow for a retest of the formidable resistance near $190.
Also, analysts believe that a comeback to $233 could be a possibility provided that Litecoin can overcome its 200-SMA.
LTC’s price has been pushing higher on the back of an upwards breakout from its parallel channel. Also, if Litecoin’s chart is anything to go by, the formation of a so-called “three white soldiers” on the daily chart is indicative of a strong change within the market sentiment after the prior downtrend.
Although the presence of a so-called period of consolidation, the bias of being bullish was pretty much active as Litecoin got to test its $170 resistance.
With that in mind, LTC will have to face a heap of selling pressure between $180 and $190. Also, provided that buyers were able to overcome the said price levels, Litecoin can easily jump to $233. It was also noted that the scarcity of robust price ceilings over the $190 mark would work and lean towards the buyers’ favor as they’ll be facing little to no resistance at all coming from the opposing end.
From that scenario, the attention would be on both $245 and $280 provided that the 200-SMA will not serve as a hindrance to Litecoin’s flight path. However, in the event that sellers push back between $190 and $180, we can look forward to a retest of $140 and likely a double bottom formation.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
