The “Silver Bitcoin” Litecoin (LTC) finds itself at a critical juncture as its price trajectory indicates potential movements in the coming days. Understanding fundamental support and resistance levels has become very important for investors who want to make informed decisions in the current market dynamics. So, which levels should be monitored for the altcoin LTC in the next period?
Silver Bitcoin Litecoin’s Post-Crash Scenario
The “Silver Bitcoin” Litecoin (LTC) has struggled to show strength after the crash on January 3rd, signaling that investor focus may shift towards newer cryptocurrencies. In the absence of a clear upward momentum, LTC is preparing for a potential 10% drop. This situation indicates that holders should be cautious before considering accumulation.
The price movement of Silver Bitcoin Litecoin has formed a range between $56 and $115 since the significant 51% drop between July 3, 2023, and August 17, 2023. Despite breaking out of a wedge formation, LTC encountered difficulties in recovery and predominantly traded below the midpoint at $85.
As of the latest update, Silver Bitcoin Litecoin is trading at $64 after a 13% drop following the wedge breakout. The suppressed enthusiasm among altcoin LTC bulls points to a potential downward move targeting the liquidity regions in the low $56 range.
Potential Bullish Turnaround: Key Levels to Watch
If Silver Bitcoin Litecoin successfully surpasses and recovers above the key $56 level, smart money is expected to come into play. The confirmation of the rise will be reinforced by altcoin Litecoin’s ability to produce a higher peak above the last significant rise. In such a scenario, LTC could embark on a 23% rise, targeting the $68 daily resistance level.
Successfully flipping this level could pave the way for altcoin Litecoin to challenge the weekly resistance at $77 and then target the midpoint of the range at $85. However, investors need to be cautious due to the upcoming ETF approval, which could bring increased volatility.
What Investors Need to Watch: ETF Approval and Potential Scenarios
As potential ETF approval approaches, investors should be on alert for increased market volatility. The outlining and reclaiming of the low level can happen swiftly within a single daily candlestick. This situation will require strategic decision-making and risk management.
Conversely, a rejection at the significant low range of $56 could invalidate the bullish thesis for altcoin Litecoin. In such a case, Silver Bitcoin Litecoin could continue to face downward pressure and potentially touch the $50 psychological support level after a 10% correction.
In conclusion, the current price dynamics of altcoin Litecoin present a scenario where careful monitoring of key levels is mandatory for investors.
