- Despite a bearish atmosphere, LTC is prepping up with a bullish pattern to regain positive momentum.
- Technical markers, MACD and RSI, signal a potential recovery for Litecoin, with a critical breakout point at $68.
Litecoin (LTC), one of the veteran cryptocurrencies, has been traversing a bearish terrain struggling to ascend past the $68 supply zone. The market headwinds have kept it tethered, despite multiple endeavors to break free. However, a change in wind direction seems imminent as LTC aligns itself with a bullish pattern that eyes a triple-digit valuation.
Preparing for Takeoff: The Technical Tell-tale
In the recent tumult caused by hawkish remarks from Fed’s Powell, the altcoin market dipped. Litecoin wasn’t spared, as it charted a bearish engulfing candle at $68, and shed 4.09% of its value, reflecting a robust supply overhead. Further, the 50-day Exponential Moving Average (EMA) near the $68 mark added to the resistance, making the climb steeper for LTC.
Currently trading at $64.26, LTC is forming a Doji candle today, hinting at market indecision. Yet, delving into the past price narrative, an inverted head and shoulder pattern emerges as a possibility. If the LTC price rebounds from the $61-$60 zone to retest the overhead supply area, it could potentially craft a bullish narrative.
This positive outlook is further bolstered by the ongoing 12% recovery rally from $55.79, averting a slump to $50, thereby manifesting a robust bullish sentiment. The technical indicators add more feathers to the bullish cap – the Moving Average Convergence Divergence (MACD) aligns positively with bullish histograms, and the Relative Strength Index (RSI) has ascended past the halfway point, suggesting a recovery in play.
The Road to $100: A Breakout Imminent?
The pivotal breakout point for LTC is at $68. Should the price action complete the bullish pattern and breach this resistance, the journey towards $100 could very well be initiated. However, the $80 milestone might present a considerable challenge before the triple-digit dream.
On the contrary, if bearish reins continue to hold strong, a breach through the $60 zone might be in the offing, putting the bullish dominance to a stringent test at the $50 demand level.
This tug of war between bullish and bearish influences, delineated by technical indicators and market sentiments, provides a captivating narrative for traders and investors eyeing the Litecoin market. The days ahead could unravel whether LTC can indeed revamp its momentum and aim for the coveted $100 mark.