Litecoin on Saturday surged greater than 11 % in opposition to the US greenback, setting a recent 2019 peak.
The litecoin-to-dollar rate established an intraday excessive at $37.539 on a bounce from close to-time period ascending trendline assist. The “digital silver” cryptocurrency since December 27 was consolidating inside a strict vary very similar to its friends throughout the crypto-board. The renewed shopping for sentiment got here three days after OKEx, a well-known cryptocurrency change, launched ethereum and litecoin perpetual swaps.
On the day of the announcement, litecoin had tried an easy rally that fizzled close to $34.962. Ethereum, like litecoin, additionally marked a powerful upside motion on the identical day, clarifying that merchants went bullish on the OKEx information. Now the affect of the announcement may finally evaporate as litecoin overreaches its interim bullish goal – a minimum of, essentially, as occurs each time after hyped-up rallies in the crypto market. But how the worth motion is hinting to play technically, let’s discover out.
Litecoin Price Technical Analysis
The litecoin price is forming a sample construction outlined by an ascending triangle. A broader view of the sample additionally reveals the completion of an inverse head and shoulder sample with $34.962 performing as the neckline and $37.539 as the interim breakout goal. Both the sample buildings level to a good accumulation state of affairs on a 4H chart, as the litecoin worth can also be trending above it’s 50 and 200-period transferring common.
At press time, litecoin is forming a pink candle as an indication of a pullback state of affairs in the coming hours. If that occurs, a retest of the decrease ascending trendline of the triangle could be possible. It could possibly be a good quick alternative in direction of the line, which could possibly be prolonged additional in direction of the 200-period transferring common (depicted in pink) if the pullback motion extends.
An impending breakout above $37.539 will dictate the path of the subsequent upside transfer, which could possibly be in direction of $44.961, the resistance stage from November 15, the day bitcoin money acquired cut up. It could possibly be an excellent lengthy alternative for day merchants offering they preserve their cease-loss 1-pip beneath the stage from the place they may enter their upside place. An extra breakout and all eyes could be anticipated to fall on $50, a psychological bullish goal.
The RSI momentum indicator is hinting a pullback state of affairs. In a super scenario, we may see litecoin consolidating between $34.962 and $37.539 as bulls await one other accumulation spherical.
Featured Image from Shutterstock. Charts from TradingView.