TL;DR Breakdown
- Litecoin price recently touched the $90.00 price level as bulls dominated the market.
- Currently, the price action is facing resistance as LTC trades near a psychological price level.
- If buyers defend $88.00 price can be expected to move towards the $100 mark
Litecoin (LTC) price has made a V-shaped recovery from the price level of $70.00 and climbed back to the $90.00 level where it currently hovers. However, the price faces resistance in crossing above the $90.00 level and has failed to cross above the level despite touching it twice on November 23 and December 3.
The broader cryptocurrency market is also enjoying a strong bullish rally with the price of Bitcoin climbing towards the $21,000 mark. Most major altcoins such as Ethereum, XRP, and Bitcoin Cash are also green across the 24-hour charts.
Litecoin price across the 24-hour frames
Across the daily frames, Litecoin price seems to be in a period of low volatility as LTC oscillates between the $90.00 and the $70.00 level.
Since bottoming out at $41.59 on September 21, the price has not touched the bottom line of the Bollinger Bands. While October saw a bullish dominance in the markets, the price action moved steadily, and the trend angle remained low due to the recurring bearish activity.
The bullish momentum continued in November, and the price action observed sharp price ascension in the latter part of the month. The price rose from $55.00 on November 1, to $94.00 on November 24. However, the price level turned out to be an overbought signal for the asset as the price broke above the Bollinger Bands.
Subsequently, Litecoin price action observed a sharp correction to the $70.00 level before stabilizing. The buyers were still not done, and the price made a V-shaped recovery to the $90.00 level. Since then, Litecoin price action has repeated this oscillating motion and is currently near the $90.00 trying to overcome the level.
Across the technical indicators, the RSI is still neutral, showing potential in the bullish trend. Meanwhile, the Bollinger bands are currently in a squeeze suggesting that a period of high volatility would follow. The MACD indicator shows a bullish crossover with increasing bullish momentum as the two EMAs converge at a sharp rate.
Litecoin price across the 1-hour frames
Across the hourly charts, we can observe that Litecoin price action has ended the consolidation it had been in since November 14. The price action made a bullish breakout from the channel and rose to the $90.00 level.
However, the sharp bullish movement placed the price above the Bollinger Bands, causing LTC to become overbought. Currently, the price shows a slight retracement to $88.61 as the price faces resistance in crossing above the $90.00 level.
Across the technical indicators, the RSI is above the 70.00 mark suggesting little room for upwards movement. Meanwhile, the recent retracement has pulled the price back inside the Bollinger Bands, but the price remains close to the upper limit of the bands. Similarly, the MACD shows declining bullish momentum as the two EMAs show signs of convergence.
Traders should expect Litecoin price to consolidate at the level for the next few hours before the price makes a bullish breakout above the $100.00 level.
However, if the price falls below the $88.00 mark, LTC can be expected to return to $82.00.
