Litecoin Technical Analysis: LTC’s Surge To Usher In Alt Season?
Daily Litecoin LTC Price Analysis
- Litecoin lacks strong resistance in its path back to $200.
- LTC has surged by ~140% in the last four weeks.
Litecoin has been on an absolute tear, rising by ~140% over the last four weeks. During this period, the digital silver rose from $72 to $171.50. Can the price truly reach the $200 psychological level? Let’s take a closer look with technical analysis.
LTC To Surge Into $200
Over the last three weeks, Litecoin has made three successive flag and pole patterns. If this trend continues, LTC may reach $185 with ease. However, the MACD shows increasing bullish momentum, so further growth can be expected.
Image: LTC/USD daily chart
Looking at IntoTheBlock’s In/Out of the Money Around Price “IOMAP,” we can see a lack of substantial resistance barriers in LTC’s path back into the $200 zone. If the bears do step back in for a price correction, there are two strong support zones on the downside to absorb this selling pressure. These two support walls lie at $160 and $150. The latter of these has had 50,000 addresses purchase 3.6 million Litecoin tokens.
The 4-hour chart shows that Litecoin has consistently found support at the 20-bar SMA. Litecoin has also reversed the parabolic SAR in this timeframe from bearish to bullish. All this bodes well from the future price action.
Image: LTC/USD 4-hour
Do note that the relative strength index (RSI) has crept into the overbought zone. This could trigger a short term bearish correction.
Key Price Levels To Watch For LTC
It will be fascinating to see how Litecoin behaves when it reaches the $200 psychological level. Are the holders going to sell off their holdings, or will they stay put and aim for bigger highs? It will be interesting to see how things pan out.