Public account: Lazy King Squirrel
The recent upward trend of Litecoin [LTC] has pushed the Altcoin above the trend line resistance and into the potential breakout zone on the chart.
As of the time of writing, the trading price of LTC is around $88, up more than 2% in the past 24 hours. The key question is: will the buyers maintain momentum and aim for higher resistance levels, or are we about to face a short-term setback?
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LTC breaks through EMA, showing strong buying momentum
Over the past three months, Litecoin has been in an upward channel pattern. Recently, after experiencing significant buying pressure, the coin price has broken out of this pattern. In this rebound, the coin price closed above the key moving average lines of 20, 50, and 200-day EMA.
This week, the Altcoin has repeatedly attempted to break through the major resistance zone of around $89 to $93.
If the bulls successfully break through $93, LTC may rebound to the next major resistance level of $100-$104. On the other hand, if it fails to break through this resistance level, it may lead to a pullback to the support level of around $76, or even lower to the $72 area, in line with the recent EMA and immediate trend line support (white dashed line).
The RSI confirms that buying pressure has eased somewhat, as it has reversed from overbought levels and fallen below the moving average. Failure to cross the moving average based on RSI may result in a rather sluggish movement on the chart.
LTC derivatives data shows
Looking at the derivatives data, the outlook for LTC is slightly optimistic. Trading volume surged 76.14% to $1.14 billion, indicating that more traders are participating as the price rises.
Open interest has also increased slightly, suggesting that traders are preparing for a major move, whether it's a breakout or a continuation of the current trend.
The long-short ratio is almost balanced at 0.9414, but on platforms like Binance and OKX, the long-short ratio is more inclined towards a bullish sentiment. Top traders are betting on a price increase.
Considering the overall market, especially the performance of Bitcoin, is also important, as it can greatly influence other Altcoins like Litecoin. If Bitcoin continues to perform well, it may help LTC break through the $93 resistance level.
