A better case late than ever, the altcoin market is finally recovering behind Bitcoin and Litecoin is following suit. With Bitcoin consolidating above $ 15,000 for the first time in 2020, LTC was trying to find its feet in the market. While uncertainty may plague its immediate trend, long-term Litecoin may retest its February 2020 highs over the next month.
Litecoin 1-day chart
Litecoin’s 1-day chart suggested a bullish breakout from a descending channel on October 22nd. It was the same day that LTC soared above $ 50 and has stayed above it ever since. The old resistance range (gray rectangle box) currently serves as a support range for the current trend. While a real breakout is currently underway, the price is also supporting the underlying support from the 50 moving average.
Trading volume hit a recent high on October 22 and October 5, both days were monumental as Litecoin topped $ 50 and $ 60 respectively. High trading volume during the peak suggested buyers were pushing. the price in a bullish direction.
The market indicators were somewhat contradictory. The Relative Strength Index or RSI is currently retesting a position in the overbought zone and a correction period may take place. However, on the other hand, MACD has completed a bullish crossover in the past 12 hours and apparently expects a bullish rally in the future.
Awesome Oscillator also represented the return of green candles, indicating increasing bullish momentum. Hence, the RSI may rise over the next few days before finally reaching a correction period.
Immediate Resistance: $ 65
Immediate support: $ 55
Support range: $ 50- $ 45
Entry point for long positions: $ 52- $ 50
Take Profit: Immediate at $ 65 while long-term at $ 84 with 2.9x risk / reward.
Stop Loss: $ 45
Right now, the trend could endure turmoil, swinging sideways between $ 50 and $ 65. However, the long term looks bullish considering Bitcoin’s impact on the broader market remains consistent. Litecoin will have the momentum to re-test its February 2020 highs, but the timing of the new test may be subject to change based on the overall market.