- Litecoin price surges 6% to a five-week-high, breaking multi-week resistance and eyeing the next hurdle.
- LTC’s breakout of key trendline resistance, with strong volume and positive momentum, lures buyers.
- A descending trendline from January becomes a crucial challenge for Litecoin as it aims to extend its three-year uptrend.
- LTC gains momentum, but a clear break of $133 is needed to prevent a consolidation phase.
Litecoin (LTC) price jumps 6.0% to post a five-week high around $122.60 early Thursday morning in New York, before easing to $120.00, up over 4.0% by press time.
The altcoin’s latest run-up follows Wednesday’s breakout of the 50-day and 100-day Exponential Moving Average (EMA), as well as today’s piercing of a descending trendline from August 24.
The LTC’s rally also gains support from strong trading volume and boosts the market capitalization (market cap), keeping buyers optimistic. According to Santiment, Litecoin’s daily trading volume jumps to a two-month high of $1.38 billion, whereas the market cap rises to the highest level since August 23, close to $9.32 billion by press time.
Apart from that, growing buzz around the Litecoin Exchange-Traded Fund (ETF) and the U.S. Dollar weakness, tied to the dovish Federal Reserve (Fed) bias and U.S. government shutdown, also contribute to the LTC’s stellar jump.
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With this, the LTC is likely approaching a key multi-month resistance around $133.00, marking a critical point in its three-year uptrend.
Litecoin Price: Daily Chart Points To Further Upside
Litecoin’s strong rally above the 100-day and 50-day EMAs, as well as a five-week resistance line, now support, gains from strong trading volume, bullish MACD signals, and upbeat RSI, not overbought, to defend the bulls on the daily chart.
With this, the LTC buyers look poised to approach 78.6% Fibonacci retracement of its January-April downturn, near $125.00. However, a downward-sloping trend line from January, close to $133.00 by press time, appears a tough nut to crack for the bulls.
Beyond $133.00, August’s high at $134.00 and resistance levels near $135.00 and $140.00 could challenge Litecoin’s upward momentum, eyeing the yearly peak of $141.20.
Alternatively, the resistance-turned-support line from late August, near $118.00, guards the immediate downside of the LTC.
Below that, the 50-day EMA and 61.8% Fibonacci retracement level, also known as the “Golden Fibonacci Ratio”, around $111.60 and $111.45 in that order, could lure sellers before the 100-day EMA of $108.60.
Notably, the LTC’s weakness past $108.60 will have the 200-day EMA and an ascending support line from April, respectively near $103.70 and $102.20, as the final defense of the bulls before giving control to the bears.
Litecoin Price: Four-Hour Chart Points To Short-Term Consolidation
On the four-hour chart, Litecoin extends a rebound from an 11-week-old horizontal support zone while crossing the 200-bar EMA and a five-week trendline resistance amid bullish MACD signals, all supporting the quote’s further upside.
However, the overbought RSI conditions suggest a short-term consolidation in prices between $122.00 and $123.00 levels, comprising tops marked since July. Beyond that, the daily chart’s higher resistances will be in the spotlight.
Alternatively, a downside break of the resistance-turned-resistance line from August, close to $118.00 by press time, could drag the LTC to the 200-bar EMA support of $110.87. Still, bears remain off the table as long as the quote holds the aforementioned 11-week support zone between $99.75 and $101.75.
Conclusion
Litecoin’s successful breakout of key resistances gained support from strong volume and bullish momentum indicators to keep buyers hopeful during a three-year uptrend. However, the nine-month resistance around $133.00 is crucial for bulls aiming for a fresh yearly high.
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