Litecoin jumps 13% to $83.97 however faces stiff resistance on the YTD excessive of $84.34
Litecoin’s price jumped to a excessive of $83.97, with a bullish breakout seen over the previous week sending the altcoin to its highest value stage since February 2020.
LTC, now ranked sixth among the many largest cryptocurrencies by market cap, is about 13% greater on the day and 32% over the week. Nonetheless, whereas bulls might nonetheless hit a brand new year-to-date (YTD) excessive, the technical outlook for LTC/USD suggests bears are getting ready for downward motion.
On the time of writing, LTC/USD offers are priced at round $81.67, with the coin’s upside momentum slowing and inches away from the $84.34 excessive reached on 13 February. If this brief time period correction gathers momentum, it dangers scuttling bulls’ plans for a breakout to $90.00 after which the psychological $100.
LTC/USD value evaluation
LTC is likely one of the largest gainers among the many high ten cryptocurrencies prior to now 24 hours.
However the state of affairs might simply flip bearish for Litecoin value if bears rally to verify a draw back flip instructed by the TD sequential indicator.
The 4-hour chart exhibits eight inexperienced candlesticks, which means that the bullish momentum seen over the previous a number of days is susceptible to weakening. The LTC/USD pair might thus reverse if the promote sign is confirmed throughout the subsequent few hours.
Litecoin value 4-hour chart. Supply: TradingView
The destructive forecast has additional help from IntoTheBlock’s In/Out of the Cash Round Worth (IOMAP) abstract chart. As per the information, the $84.00 space presents a stable resistance block and could possibly be liable for a downturn to the help space at $80.00.
Bulls face a battle at $84.00 as proven on the IOMAP chart. Supply: IntotheBlock
A breakdown on the above value stage will improve the bearish stress and sure dump LTC/USD to lows of $76.00 (earlier excessive on 17 November). The 200-SMA ($64.01) supplies additional help if bears strengthen their grip.
LTC/USD value each day chart. Supply: TradingView
Alternatively, Litecoin value wants to remain above the 10-EMA and 50-SMA (each day chart) to depart the bullish setup intact. This image is helped by the RSI and the MACD indicators, which means that bulls have the benefit going into the weekend.
In the event that they maintain costs above $80.00 and efficiently take out the $84.00 barrier, the upside momentum might push LTC value to $86.00. Above this stage, the IOMAP suggests the following hurdle is at $90.00 after which at $100.