Even as Chainlink and Bitcoin steal the limelight, one cannot forget Litecoin. The world’s first altcoin is currently in the 8th spot on the coin market, ahead of resurgent coins like Cardano and Binance Coin, trending with a daily gain of 7.13 percent, second only to Chainlink. Litecoin’s market cap was a strong $4.03 billion at press time and managed to break past the $60 mark, but will this pump be succeeded by a dump, or will LTC break higher?
Looking at the short-term 4-hour chart for the altcoin things seem bullish. Between 0000 to 0400 UTC on 16 August, the altcoin surged by 3.79 percent, breaking past the $60 resistance line which it had been trading below since the August 2 drop where Bitcoin ran into a bull-trap. Since the drop two weeks ago, Litecoin was (till 11 August) trading in an ascending triangle trying to push higher and higher before a drop between 1200 to 1600 UTC on the day pushed to $54.64. After dropping to $53.71, a support began to form which the price held for the next 24 hours and then changed course.
Source: LTCUSD via Trading View
On August 13 between 2000 to 0000 UTC, the price surged by 5.5 percent hitting resistance at $57.24 but rising higher still on August 15. The momentum didn’t give out there; four out of the next five four-hour candlesticks were green, pushing the price up by 8.5 percent. This pump was significant because there was no Bitcoin anchoring movement, other altcoins were trending higher than LTC, and digital silver failed to break past the $60 resistance for over two weeks, which it finally broke during the wee hours of August 16.
With a press time trading price of $62.1, the next set or resistance levels lie at $63.53 and $65.04. Relative strength index for the altcoin has crept above 70 for the first time since August 7, with the market admitting that LTC is entering an overbought zone. If the trading volume doesn’t hold, or rather if new investors don’t flow in the supply of LTC sold for a profit will overshoot the demand forcing traders to set lower maker orders to sell quickly, bringing the price down as a consequence.
Looking down, a key support level for the altcoin is the support at $60.45 given the inability to break the same during the first two weeks of August. Further, a rising support is forming courtesy of the descending triangle’s lower base. Target price, in the short term, can be placed at $63.53 and $65.04, but is unlikely that LTC will surge this high without market momentum to back it up.