Litecoin bulls pushed LTC towards the upside, making the cryptocurrency post double-digit gains. Where will Litecoin go next?
Litecoin spent the majority of 2021 trading in the same direction as Bitcoin, but with a lower intensity. However, LTC bulls stepped into the market and propelled its price towards the $160.8 resistance level and put the cryptocurrency on the traders’ map once again.
Litecoin’s overall outlook is quite bullish, both from a fundamental and technical standpoint. However, this move was mostly caused by the technicals. Taking a look at its weekly performance, LTC has posted gains 14.20%, outperforming BTC’s gain of 3.70%, but falling short of ETH’s 20.88% gains.
At the time of writing, Litecoin is trading for $158, which represents a 23.27% gain when compared to its previous month’s value. Litecoin is currently the 7th largest cryptocurrency by market cap, boasting a value of $10.5 billion.
Taking a look at the daily chart, Litecoin has been on a steady uptick after the 11th January crash. Its main resistance level is currently the $160.8 level, which could now be considered a pivot point, as LTC’s short-term price movement depends on this level greatly.
If Litecoin manages to break $160.80, bulls may push the price further up towards the $186.30 this year’s highs. On the other hand, if the cryptocurrency fails to break this crucial level, we may see a retracement to the previous levels and a possible test of the $145 zone.
LTC/USD daily price chart. Source: TradingView
The technical overview shows Litecoin’s daily RSI hovering just below the overbought area, with its value currently sitting at 68.12.
LTC/USD 1-hour chart. Source: TradingView
Litecoin’s hourly time-frame clearly shows us the two price spikes, one taking its price just below $155 and the other stopping right below the $160.80 resistance level. While it seemed at one point like the first spike’s gains will be eaten away by the retracement, Litecoin’s bounce off of the 21-hour EMA and the 38.2% Fib retracement level of $145.10 pushed the price up and caused another push towards the upside. Litecoin doesn’t seem like it has stopped attempting a break of the $161.5 level, and traders might want to look for a “ride the wave” trade or a retracement trade.