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Litecoin Price Prediction: LTC breaks above key resistance but falters at $95

Last Updated December 17th 2020

Daily Litecoin LTC Technical Analysis

  • Litecoin managed to shoot up past the $89 resistance barrier.
  • Breaking past $95 resistance will take LTC above $100.

Litecoin bounced up from the 20-day SMA and broke into the $90. However, it seems that the bulls have become gun-shy after testing the waters at $95. Let’s see what the future holds for LTC.

 

LTC breaks above critical resistance

As we have noted before, the $89 resistance barrier is a key level that had previously forced the daily price to chart a bearish double top pattern. However, the price managed to bounce up from the 50-day and 20-day SMA and managed to breach the $89 wall this Wednesday.

ltc/usd daily chart 121720

Image: LTC/USD daily chart

However, it seems like the price tested the waters at $95 and then dipped down. Looking at IntoTheBlock’s In/Out of the Money Around Price (IOMAP), this $95 zone is a crucial barrier, wherein 13,500 addresses had previously purchased nearly 2 million LTC coins.

litecoin addresses volume chart

Image: IntoTheBlock

If the buyers break past this zone, a lack of substantial resistance upfront should buoy LTC above $108. Looking at how the buyers have been behaving, it’s only a matter of time before Litecoin manages to do so. Adding further credence to our bullish outlook is the “daily active addresses” metric.

litecoin addresses activities chart

Image: IntoTheBlock

As you can see, over the last 24 hours, the number of new addresses entering jumped up from 50,000 to 63,000. This is a sign of a healthy network, which bodes well for the digital silver.

 

Key price levels to watch for LTC

As the IOMAP suggests, the $95 resistance barrier is significant. If the buyers take advantage of this, they should explode the price above the $100 zone. On the downside, we can see a strong support wall at the 20-day SMA that should hold the price up.

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