Home Crypto News Litecoin breakout to 2020 high at risk of fading away

Litecoin breakout to 2020 high at risk of fading away

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Litecoin jumps 13% to $83.97 however faces stiff resistance at the YTD high of $84.34

Litecoin’s worth jumped to a high of $83.97, with a bullish breakout seen over the previous week sending the altcoin to its highest worth degree since February 2020.

LTC, now ranked sixth among the many largest cryptocurrencies by market cap, is about 13% increased on the day and 32% over the week. However, whereas bulls might nonetheless hit a brand new year-to-date (YTD) high, the technical outlook for LTC/USD suggests bears are getting ready for downward motion.

At the time of writing, LTC/USD offers are priced at round $81.67, with the coin’s upside momentum slowing and inches away from the $84.34 high reached on 13 February. If this brief time period correction gathers momentum, it dangers scuttling bulls’ plans for a breakout to $90.00 after which the psychological $100.

LTC/USD worth evaluation

LTC is one of the most important gainers among the many high ten cryptocurrencies previously 24 hours.

But the state of affairs might simply flip bearish for Litecoin worth if bears rally to verify a draw back flip instructed by the TD sequential indicator.

The 4-hour chart reveals eight inexperienced candlesticks, which means that the bullish momentum seen over the previous a number of days is at risk of weakening. The LTC/USD pair might thus reverse if the promote sign is confirmed throughout the subsequent few hours.

Litecoin worth 4-hour chart. Source: TradingView

The unfavorable forecast has additional help from IntoTheBlock’s In/Out of the Money Around Price (IOMAP) abstract chart. As per the information, the $84.00 space presents a stable resistance block and could possibly be accountable for a downturn to the help space at $80.00.

Bulls face a battle at $84.00 as proven on the IOMAP chart. Source: IntotheBlock

A breakdown at the above worth degree will improve the bearish stress and sure dump LTC/USD to lows of $76.00 (earlier high on 17 November). The 200-SMA ($64.01) gives additional help if bears strengthen their grip.

LTC/USD worth day by day chart. Source: TradingView

On the opposite hand, Litecoin worth wants to keep above the 10-EMA and 50-SMA (day by day chart) to depart the bullish setup intact. This image is helped by the RSI and the MACD indicators, which means that bulls have the benefit going into the weekend.

If they maintain costs above $80.00 and efficiently take out the $84.00 barrier, the upside momentum might push LTC worth to $86.00. Above this degree, the IOMAP suggests the subsequent hurdle is at $90.00 after which at $100.

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