In recent days, the cryptocurrency market has seen a dazzling increase in the performance of Litecoin, with LTC trading above a significant resistance level of $105 against the US Dollar, registering an increase of over 10%. This movement strengthens the forecast of an upward trend towards the $120 resistance area in the near term.
Litecoin Offers Hope to Investors
Litecoin has shown positive signs starting from a solid base at the $95 support region, giving investors hope. Currently, the price is trending above the 100 simple moving average and has consolidated above $105.
A notable point in the chart analysis is the strong uptrend line formed around the $101.50 support level. This suggests that if LTC does not fall below $100, it could gain momentum towards the $120 level.
Reaching $120 Feasible for LTC
It is evident that Litecoin has outperformed Bitcoin and Ethereum. After establishing a solid base above $80 in the past few days, there was a marked increase in price. Bulls pushed the price above resistance levels of $88 and $95, taking it over $100.
Currently, it seems likely that Litecoin will continue to rise towards the $120 and $122 levels. However, we may encounter a stronger momentum if the price surpasses the $115 resistance, which could extend LTC’s target towards the $132 resistance area.
If Litecoin’s price fails to surpass the $105 resistance level, a downward correction seems inevitable. For now, the first support level on the downside is identified around $105. However, a break below this level could pull LTC further down.
The next critical support level is around $100. A move below this level could trigger a drop towards the $95 support level. Moreover, we should not be surprised if a larger decline in price pushes LTC down to the $88 support level.
What Do Technical Indicators Suggest?
Looking at technical indicators, the 4-hour MACD is gaining momentum in the bullish zone. However, it remains uncertain whether this rise will continue. The 4-hour RSI (Relative Strength Index) for LTC/USD is above the 65 level, which can be interpreted as a somewhat positive sign.
The main support levels for Litecoin are identified at $105 and then $100. On the other hand, resistance levels to watch are $115 and $120.
