Optimistic market sentiment and a surge in new addresses could trigger a new surge in Litecoin prices
Litecoin, as well as most other altcoins, saw a huge bounce this past weekend as LTC bulls mirrored the great performance of Bitcoin and Ethereum. While the BTC price hit the $45,000 mark for the first time in over two months, Ethereum’s successful London hardfork caused the ETH/USD trading pair to break through the $3,000 mark.
Litecoin also closed above the $150 level, marking the first two consecutive daily closes above that mark since June 20.
LTC is trading at around $149 at the time of writing, which is slightly lower as profit taking seems to be limiting early morning trading this Monday.
However, once the bulls resume the uptrend, the price could rise 26% to an important resistance.
Litecoin price outlook
The Litecoin price is trading back above the 50-SMA line after a bounce off a low of $104 prompted Litecoin buyers to break through resistance at $138. This rally confirmed the pattern of a double bottom, and the consolidation above the 50 SMA gave the bulls a chance to make a move above the $147 resistance line.
Price has turned back down after rallying to a 7-day high of $157, but a clear daily close at or above $150.79 should allow LTC bulls to make further gains towards the flat 200 SMA at $191.18.
If the LTC/USD trading pair breaks this price barrier, buyers could see a 26% price change from the current price level.
This prospect is likely to spur the bulls and trigger renewed interest at the $200 level, giving buyers the opportunity to breach the $200 level and even the 38.2% Fibonacci retracement level of the swing from 301.79 to 104.07 at $226.26.
LTC/USD Daily Price Chart. Source: TradingView
The Litecoin price could also fall below the 78.6% retracement level at $146.39. Buyers will be in control if they can maintain this level and look for new upside prices. As seen on the price chart above, the daily RSI of above 50 supports the possibility of such an immediate rebound.
However, a move lower would expose LTC to a downtrend, indicated by the sloping 50-SMA curve at $133.83, with a loss likely bringing the support line at $104.07 back into focus.
Sarah has been working in the field of crypto news for several years. She writes as a freelance author for various trade magazines on blockchain, bitcoin and altcoins. She also has a professional background in finance with a focus on investment and new forms of financing.