Litecoin Rallies +10% Breaking Resistance, are the Bulls back?
It has been painful yet predictable market behaviour following on from the Litecoin network reward halving, but signs are starting to indicate a reversal as Litecoin has rallied 9% already this week breaking out above the first level of overhead resistance. Perhaps this is a sign of things to come as ground was also made against Bitcoin.
Litecoin has been in a down trend since July which has seen 50% of its market capitalisation wiped out, however that now appears to be coming to an end after bouncing from historic support levels around $60. Since the start of September Litecoin has appeared to be forming an ascending triangle against the US dollar and has today decisively broken out, trading higher at ~$77 within the day.
The target for this breakout is around $81 which would put us just below the next horizontal resistance point, a break of this would have the market looking for a short term re-test of $100 and a return to triple digits would be a very strong signal of potential new yearly highs back to $140 and beyond. The same picture carries over onto the ltc/btc ratio, as today saw a decisive break of its resistance with the next stop at 0.008 and 0.01. The 50 day moving averages have both been surpassed with the weekly also overtaking the monthly for the first time since June.
Litecoin now appears to be ranging in a rising channel and despite briefly breaking higher it is now back within the upper bound. Around here would be a reasonable place for a slight pull back or consolidation while the market evaluates its next steps.
We asked Long Term Litecoin trader, investor and community member Finitemaz for his opinion on the market, who jokingly replied:
“I’m maxed out on hopium right now.”
With Bitcoin trading mostly sideways for the last few months in what appears to be consolidation, many are seeing renewed interest in the space especially with the launch of Bakkt and bitcoin futures next week.