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Litecoin has shown a consistent positive trend in recent weeks, indicating strong market sentiment. As the broader market has gained strength in recent trading sessions, Litecoin has managed to maintain its gains. Bitcoin price is currently above $31,000, resulting in a rise in other altcoins as well.
Although Litecoin has not experienced significant changes over the past 24 hours, it has maintained a positive trajectory. However, on the weekly chart, the altcoin is up by over 20%. This remarkable correction began in June when Litecoin breached the $70 price mark, and since then, the coin has gained over 50%.
From a technical perspective, the outlook for Litecoin is in line with the bullish sentiment. Both the demand and accumulation indicators on the charts remain elevated, indicating the potential for further gains. However, there is an important resistance to consider.
In the coming days, Litecoin is expected to experience a surge due to its halving event which is scheduled for August 3, 2023. Additionally, the market capitalization of Litecoin has also improved, indicating an increase in demand for the cryptocurrency.
Litecoin Price Analysis: Intraday Chart
At the time of writing, the price of LTC was $106. Although the altcoin is trading below its resistance at $108, this particular level is not the main hurdle.
The key challenge for Litecoin lies in gaining enough strength to overcome the resistance of $115, a level at which the coin has historically faced rejection.
In April of last year, Litecoin reached this level but was unable to sustain trading above it for the rest of the year.
Conversely, if Litecoin fails to break the $115 resistance, it could experience a decline towards the $103 support. A further decline from this point would take LTC below the $100 mark, indicating a complete invalidation of the bullish intent.
technical analysis
The price jump in Litecoin from the $90 level has significantly boosted investor confidence. The Relative Strength Index (RSI) indicator has crossed into the overvalued zone, indicating increased buying activity.
Although it retreated slightly from the overbought zone, it remained above the 60-mark, indicating continued buying strength in the market.
Moreover, LTC price action is supported as it remains above the 20-simple moving average (SMA) line. This shows that buyers have taken control of the market and are driving up the price.
The Moving Average Convergence Divergence (MACD) indicator formed a long green histogram, indicating a favorable buy signal for LTC. This suggests that the market is likely to continue rising.
Additionally, the Bollinger Bands on the chart were wide open, indicating an increase in price volatility. The upper band coincides with one of the resistance levels at $108.
This suggests that LTC may face further volatility in price and may face resistance at the mentioned resistance level. The next trading session will continue to be crucial for altcoins.
Featured Image from Unsplash, Chart from Tradingview.com
