Bitcoin’s bullish momentum noticed Litecoin climb in current hours as properly. On the charts, LTC has posted a 15% rise above the $143 lows to commerce at $163.9 at press time, which was spectacular. Litecoin bulls nonetheless have an extended strategy to go earlier than requires $200+ can materialize.
If bulls handle to determine $163 as an space of demand within the days/weeks to come back, the good points of October would possibly as soon as once more be achievable.
Supply: LTC/USDT on TradingView
The value motion in December noticed a number of assessments of the $140 space in the hunt for consumers. This degree held as assist and has additionally served as assist in September and main resistance in June, marking it as a big degree.
Equally, the $163 space (decrease crimson field) has been examined a number of occasions as each, an space of demand in addition to one in all provide, since August. On the time of writing, this was the world that the LTC bulls and bears had been preventing to regulate.
Nevertheless, buying and selling quantity has been barely decrease than the earlier months’ assessments of this space. Above the $163 space lay the 23.6% retracement degree at $176. This degree was plotted based mostly on LTC’s dive from $413 in Could to $103 in July.
LTC has to climb above $163 and $176, and shopping for quantity needs to be witnessed earlier than LTC may be stated to have bullish power on increased time frames.
Rationale
Supply: LTC/USDT on TradingView
The value motion’s story of robust consumers at $143 assist was backed up by the OBV, which fashioned a rounded backside and will climb increased within the coming days. A continued rise in OBV (increased lows) has to strengthen upward worth motion to lend the transfer credibility.
The RSI flipped impartial 50 to assist however nonetheless had the 60 degree (pink) to climb above. This worth has been examined previously when the worth additionally approached the $190 space (higher crimson field) in the hunt for liquidity. Therefore, within the coming weeks, if the worth climbed to $190 whereas RSI climbed previous 60, it might point out that bulls actually had regained power on longer timeframes.
Conclusion
It was nonetheless too early to flip to a bullish bias for Litecoin. The rounded OBV backside mixed with the $143 assist degree protection urged LTC bulls might be waking up. The 23.6% retracement degree at $176 has not been hurdled both. Flipping $163 to demand can be step one towards restoration.
