Since last weekend, the cryptocurrency market showcased a sluggish trend as most of the major altcoins are trading sideways following the BTC price. However, silver to Bitcoin’s gold— Litecoin is defying market uncertainty to provide five consecutive green candles in the daily. As observed with the latest Litecoin price analysis, the bullish turnaround has elevated the LTC from $56.89 to $69, a significant increase of 21.55%, and the potential major market reversal.
Litecoin Price Analysis: Key Resistance and Support Levels to Watch
Over the past three months, the Litecoin price analysis has revealed a steady correction trend in the daily chart. This downtrend governed by the formation of a wedge patternplunged the LTC price from $112.8 to $56.86, projecting a nearly 50% loss.
The two downsloping trendlines as dynamic resistance and support still stand as major forces driving the current price trajectory. A recent reversal from the pattern’s lower trend and $57.7 has uplifted the asset to $69, while the market cap surged to $5.15 Billion.
According to recent data from crypto analytics firm IntoTheBlock, Litecoin processes an impressive $2.85 billion in daily transactions over $100,000, which is more than 50% of its market capitalization. This highlights Litecoin’s substantial transaction volume in comparison to other major cryptocurrencies. For instance, despite Dogecoin having roughly three times Litecoin’s market cap, it only sees $590 million in large transactions daily.
This high volume of substantial transactions on the Litecoin network suggests significant whale activity, indicating strong interest and engagement from large investors.
Thus, a potential breakout overhead trendline will signal an early sign of trend reversal and bolster the LTC buyers to chase the $90 mark.
Triangle Formation Points to Imminent Breakout
The Litecoin price prediction on the weekly chart shows the long-term trend remains sideways under the influence of triangle formation. The two converging trendlines could continue to squeeze the altcoin’s price spread before it’s ready for a decisive breakout.
An upside breakout from the triangle pattern will signal the end of accumulation and the potential of a major rally.
Technical Indicator:
EMAs: The 20D and 50D Exponential Moving Averages act as dynamic resistance against a bullish upswing within the wedge pattern.
RSI: The daily Relative Strength Index slope reverted from the oversold region to 46% accentuating a strong buying activity from market participants.
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