Litecoin bulls regaining control after crucial support, but on-chain metrics reveal immense resistance ahead

Published November 19, 2020 | Updated November 19, 2020

Litecoin's MimbleWimble Testnet Launch
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Litecoin bulls regaining control after crucial support, but on-chain metrics reveal immense resistance ahead

  • Litecoin rebounded from crucial support between $68 and $70 but has stalled under $75.
  • LTC/USD is likely to settle for consolidation between $68 and $75 ahead of a potential breakout.

Litecoin price hit a barrier marginally under $80 following a 23% spike in just two days. The sixth-largest cryptocurrency retreated to establish and confirm support between $68 and $70. A reversal is underway, and Litecoin seems poised for another breakout to $80.

The current trend is bullish after the initial support mentioned above encouraged more buyers to hold ground. An increase in trading volume suggests that volatility could continue to swing in the bullish direction.

Meanwhile, Litecoin is trading at $74.4 amid a developing bullish momentum. A step above the immediate key resistance at $75 might boost the price even further towards $80. The upward moving simple moving averages also validate the uptrend and reinforce the bullish control over the price.

LTC/USD 4-hour chart

LTC/USD price chart
LTC/USD price chart by Tradingview

Despite the bullish outlook, a zoomed out 4-hour chart reveals an ascending wedge pattern. These patterns are common in technical analysis and highlight a decreasing buying pressure and a potential correction. If Litecoin is rejected at $75 or the recently traded monthly high of $77, losses likely to come into the picture could revisit the 50 SMA at $65.

Simultaneously, IntoTheBlock’s IOMAP model shows that Litecoin is heading into a region of immense resistance between $75 and $76.6. Here, about 52,800 addresses had previously bought roughly 2.1 million LTC.

Litecoin IOMAP chart
Litecoin IOMAP chart by IntoTheBlock

On the flip side, the technical support between $68 and $70 has been confirmed by on-onchain metrics. In other words, Litecoin might stay in the range between $68 and $75 a while longer before a significant breakout takes place, which calls for consolidation.

Litecoin Intraday Levels

Spot rate: $74.7

Relative change: 1.3

Percentage change: 1.7%

Trend: Bullish

Volatility: Expanding

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
John Isige 939 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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