- Litecoin has seen a strong bullish resurgence amid the recent market rally.
- Current momentum and positive derivatives data suggest buyers can still push higher, but a close above the immediate resistance range is crucial.
Litecoin’s (LTC) recent uptrend has pushed the altcoin above its trendline resistance and into a potential breakout zone on the charts.
LTC was trading at around $88 at the time of writing, up more than 2% in the last 24 hours. The crucial question is: will buyers maintain momentum and target higher resistances, or are we set for a near-term setback?
LTC broke above its EMAs to illustrate strong buying momentum
Source: TradingView, LTC/USDT
Over the past three months, Litecoin has been moving in an ascending channel trend. Recently, it broke out of trend after witnessing massive buying pressure. During this rally, it closed above key moving averages such as the 20, 50 and 200 day EMAs.
The altcoin made several attempts this week to break through a major resistance range around $89 to $93.
If the bulls manage to make a decisive breakout above $93, LTC could bounce towards the next major resistance in the $100-$104 zone. On the other hand, failing to break through this resistance could cause a pullback towards the support level around $76 or even lower towards the $72 area, aligning with the short-term EMAs and immediate support of the trend line (white, dotted).
The RSI confirmed an easing of buying pressure as it reversed from its overbought levels and fell below its moving average. An inability to cross the moving average based on the RSI can cause rather slow movement on the charts.
LTC Derivates data revealed THIS
Source: Coinglass
Looking at derivatives data, the outlook is somewhat positive for LTC. Trading volume jumped 76.14% to $1.14 billion, showing that more traders are getting involved as prices rise.
Open interest has also increased slightly, suggesting traders are preparing for a significant move, whether a breakout or a continuation of the current trend.
Read Litecoin (LTC) Price Forecast 2024-2025
The long/short ratio is almost balanced at 0.9414, but it leans more towards bullish sentiment on platforms like Binance and OKX. Major traders were betting on a price rise.
It is also important to consider the entire market, especially Bitcoin’s movements, as they greatly affect other altcoins like Litecoin. If Bitcoin continues to perform well, this could help Litecoin break above the $93 resistance.
