Litecoin has seen a decent 6% price bump in the past 24 hours, making it the best-performing coin among the top 10. It’s currently trading at $96.35. After a 21% price fall this month, the cryptocurrency managed to find support at the 200-day EMA which allowed the rebound to occur.
The recent bounce comes four days ahead of a scheduled Litecoin block halving which is set to take place at block number 1,680,000. After the halving, Litecoin’s mining reward will drop from 25 LTC per block to 12.5 BTC per block, which in effect reduces the inflation rate of Litecoin by 50%. Basic economics tells us that if the demand for it remains the same or increases, its price should go up. Of course, it’s entirely possible that the event has already been priced in by investors.
Litecoin remains fourth among the top crypto projects by market value with a market cap of $6 billion.
Looking at the LTC/USD 1-day chart:
- Since our previous Litecoin analysis, its price has fallen back to the support at the 200-day EMA and managed to hold there. Today’s 6% surge allowed LTC to break above a short-term descending trend line, which is a good sign for the bulls. However, the candle has yet to close in order to confirm that the trend line has broken.
- From above: The nearest level of resistance lies at $97.18. This level of resistance caused problems for the market in April. If the bulls continue above $97.18, the next level of significant resistance lies at $100. This resistance is further strengthened by the 100-day EMA. Above $100, we can expect higher resistance at $110, $119, $135, $130, and $136.
- From below: The nearest levels of support lie at $90 and $88. The support at $88 is bolstered by the 200-day EMA. Beneath $88, further support can be found at $84.77, $80 and $77.45. If the selling continues beneath $77.45, more support is located at $70, $67 and $63.
- The trading volume has begun to flatten during the latter half of the month as the selling has decreased.
- The RSI recently managed to break above 50, which indicates that the bulls are in control now. If the RSI can remain above 50 and climb higher, that will be a very promising sign for the bulls.
Looking at the LTC/BTC 1-day chart:
- Litecoin’s Bitcoin market has remained fairly static. However, we saw it rise from 0.0094 BTC to 0.0097 BTC today, where resistance was found. The recent increase allowed the cryptocurrency’s price to climb above the 21-day EMA, which is a promising sign for buyers.
- From above: If the bulls can break above 0.0097 BTC, higher resistance is located at 0.01 BTC. That is followed by resistance at 0.0106 BTC and 0.0111 BTC. Above this lies significant resistance at both the 100 and 200-day EMAs at 0.0115 BTC and 0.0118 BTC, respectively.
- From below: The nearest level of support now lies at 0.0094 BTC. Beneath this, further support exists at 0.009 BTC and 0.00824 BTC (provided by the short-term .886 Fib retracement).
- The trading volume has remained far below the average for the past 2 weeks.
- The RSI has risen above 50, which is a promising sign for the bulls as the momentum is on their side. However, the Stochastic RSI is in overbought territory, and a bearish crossover signal may push LTC/BTC lower.
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Cryptocurrency charts by TradingView.