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On January 30, Litecoin (LTC) lit up the charts in both USD and Bitcoin (BTC) by increasing by more than 20% to secure a spot as the highest daily earnings among the top 10 cryptocurrencies ranked by market cap.
Crypto Market Daily Price Chart. Source: Coin360
Investors will recall that in 2019 Litecoin led the rally in Ether (ETH) and Bitcoin by pumping over 350% from January to June. Therefore, the altcoin’s most recent price action is sure to spark some strong sentiment among traders who may interpret the altcoin’s turnaround as the start of a broader cryptocurrency market rally.
LTC USDT daily chart. Source: TradingView
Litecoin price reaches a 4-month high
The LTC / USDT pair broke above the 200-DMA on the highest trading volume seen since April 2019, when the price moved from $ 59 to $ 99. In addition to breaking the descending channel, Litecoin also rose above a high node. volume in the visible range of the volume profile at $ 55- $ 58 to set a higher weekly high at $ 69.89, a price not seen since September 2019.
Although the Moving Average Convergence Divergence (MACD) turned bullish on Dec 21, 2019, it took some time for Litecoin’s price action to heat up and the most recent January 29 rally preceded the rally in the 20% on Thursdays.
LTC USDT daily chart. Source: TradingView
Traders will also notice that Litecoin completed a huge cup and handle pattern and came out of the handle forcefully.
Typically, the cup and handle formation serves as a springboard for the continuation of the uptrend; and the projected breakout target is often predicted by measuring the distance from the peak on the right side of the cup and from the bottom of the cup.
In this case, traders who swear by the cup and handle model would cite a $ 90 to $ 100 target, but we all know that the cryptocurrency market is driven by an incredibly complex set of ever-changing factors.
Litecoin now joins the ranks of altcoins that break out of their multi-year descending trend lines and 200-day moving average resistance zones. As for the next steps, traders will need to turn $ 63 and 200-DMA to support before the price can go up.
LTC / BTC also turns bullish
LTC BTC daily chart. Source: TradingView
The price action on Litecoin’s Bitcoin (LTC / BTC) pair also mirrors that of the LTC / USDT pair, although the cup and handle pattern is much more superficial. The LTC / BTC pair has broken through the 200-DMA node and the high volume VPVR node and is now approaching a long-term resistance at 0.007529 satoshi.
Similar to LTC / USDT, the MACD histogram turned positive and the MACD crossed sharply above the signal line. The relative strength index (RSI) is also pushing into the overbought region, suggesting that the price may need to return to the support at 0.006736 (sats).
Traders playing with the USDT pair and especially the BTC pair will need to keep an eye on the trading volume as today’s buying volume on both pairs reached a nearly 7-month high.
If the price can push above 0.007529 (sats) and 0.008086 (sats), the altcoin would be on course to set a higher high at 0.009088 (sats).
Litecoin weekly price chart. Source: Coin360
Currently, Litecoin’s dominance rate compared to all other cryptocurrencies is 1.5%. Bitcoin’s dominance rate is now 65.9% and the total cryptocurrency market cap is $ 258.4 billion.
Aside from Litecoin, some other altcoins have seen notable gains. The ETH rose 4.02% to finally break above the resistance at $ 175 and is now trading at $ 182.56. EOS was also up 4.75% and TRON (TRX) gained 3.02%.
