Litecoin’s price managed to record double-digit gains over the past week. What’s the reason behind the price increase, and what’s next for LTC?
Fundamentals and past price performance
Litecoin has been in an uptrend ever since late January, with its price slowly rising to as high as $230. However, a recent pullback brought its price to a low of $186.50 before bouncing back up. Litecoin is now quite stable and preparing for the next move as it approaches its recent high.
Litecoin’s overall outlook is quite bullish, both from a fundamental and technical standpoint. Technical analysts such as NebraskanGooner saw the correlation between BTC and LTC, and looked at their past performance to determine LTC’s next move:
As soon as LTC gets above the $235 area I expect it to follow BTC's trajectory and head above $1,000. pic.twitter.com/n0plFqXxN9
— NebraskanGooner📈 (@nebraskangooner) February 13, 2021
Taking a look at its weekly performance, LTC has posted week-over-week gains of 13.22%, outperforming BTC’s gain of 9.02% and ETH’s 0.68% loss.
At the time of writing, Litecoin is trading for $218, which represents a 79.08% gain when compared to its previous month’s value. Litecoin is currently the eighth-largest cryptocurrency by market cap, boasting a value of $14.45 billion.
LTC/USD daily chart price analysis
Taking a look at the daily chart, Litecoin has been on a steady uptick ever since 28 January. The cryptocurrency managed to reach $230 before having a healthy pullback which seemingly ended at the 23.6% Fib retracement mark.
After posting a Doji candle (a trend reversal indicator) yesterday, LTC pushed up, and is now contesting the $220 level.
The technical overview shows Litecoin’s daily RSI has just entered the overbought territory, with its value currently sitting at 70.40.
LTC/USD hourly chart price analysis
Zooming in to Litecoin’s hourly timeframe shows us the strength of the 23.6% Fib retracement level of $205, which held against all previous pullbacks. However, LTC now faces immediate resistance near the $220 level, which it has to pass if it wants to reach $230 or above.
The zone around $220 should be considered a “pivot zone,” as it is crucial for LTC to pass it in order to push further up. If the cryptocurrency doesn’t make it, it is fairly likely it will then push to the downside.