- Litecoin spikes 33% in seven days to become the best performing altcoin.
- Litecoin is still in the middle of bullish pressure in spite of the correction from the new high.
Litecoin has broken away from Bitcoin price to champion its unique recovery journey. The price of most of the cryptocurrencies like Ethereum and Ripple are still tied to Bitcoin movements. However, at the moment, Litecoin has shown the ability to act independently of what is going on with Bitcoin.
Initially, there was a break above $120 but the momentum stalled slightly under $130. In just a week Litecoin has added 33% to its value becoming the best performing altcoin of not cryptocurrency in a consolidating market.
LTC/USD 4-hour chart
Litecoin surged above the resistance at $130 and extended the gains to a new 13 months high above $140 during the Asian trading hours on Wednesday. Meanwhile, a correction from the new 2019 high at $142.19 is having LTC/USD hunt for balance. The price is trading at $137 at press time and it appears that the retracement will occur until we find credible support.
The Relative Strength Index (RSI) has been forming a higher low pattern since June 4. Moreover, it has recovered into the overbought after forming support at the 50 average. Retraction from the overbought will mean that the bulls are exhausted following the surge. It is likely that Litecoin will test $130 level to create more demand before advancing north to attack higher levels around $150.
The moving averages are playing catch at the moment, but the double of the 50 Simple Moving Average (SMA) above the longer term 100 SMA means that Litecoin is still in the middle of bullish pressure in spite of the correction from the new high.
Litecoin Technical Indicators
RSI 4-hour: Shows diminishing bullish pressure as Litecoin corrects from new highs.
50 SMA and 100 SMA: Credible support above $110.
Key Support Areas: $120, $100 and $85.
Key Hurdles: $140 and $150.
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