Litecoin jumps 13% to $83.97 however faces stiff resistance on the YTD excessive of $84.34
Litecoin’s value 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% larger on the day and 32% over the week. Nevertheless, 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 quick 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 among the largest gainers among the many high ten cryptocurrencies up to now 24 hours.
However the state of affairs might simply flip bearish for Litecoin value if bears rally to substantiate a draw back flip steered 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 liable to weakening. The LTC/USD pair might thus reverse if the promote sign is confirmed inside the subsequent few hours.
Litecoin value 4-hour chart. Supply: TradingView
The detrimental forecast has additional assist 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 chargeable for a downturn to the assist 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 enhance the bearish strain and certain dump LTC/USD to lows of $76.00 (earlier excessive on 17 November). The 200-SMA ($64.01) supplies additional assist 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 subsequent hurdle is at $90.00 after which at $100.