Litecoin bulls seek to push LTC above $100 and in doing so, they get the hindwinds required to sustain the uptrend. Litecoin price is up 36% so far in 2023, which is the best start to the year since 2020. The remarkable recovery has turned several on-chain signals bullish, as will be later discussed in this article.
Litecoin Price Needs To Flip $100 BAck To Support To Sustain The Uptrend
LTC displayed a strong uptrend on Sunday, rising as much as 10% to reach a high of $98 on Coinbase. This follows a brief consolidation period that saw the price oscillate between $85 and $92 from January 21 to 28. Litecoin broke out of this consolidation zone yesterday, an indication that the recovery was intact.
However, the bulls must flip the $100 psychological level back to support in order to secure the uptrend. This is a very significant zone that if turned into a demand area will provide the wings needed to lift the Litecoin price higher. Note that LTC bounced off this zone twice in the past: first in February 2022 when it went on to rally 36% to $144 and later in March when it climbed 33% to $115.
As such, a daily candlestick close above $100 could see the LTC price climb to confront resistance from the $106 level and later the major resistance at $115. This could be where Litecoin’s upside may be capped in the short term.
In highly ambitious cases, LTC may rise above $120 to tag the $150 psychological level. This would represent a 60% uptick from the current price.
LTC/USD Daily Chart
The moving averages were facing upward, a sign that the market outlook was significantly bullish. Moreover, the moving average convergence divergence (MACD) indicator was moving upward deep in the positive region, reinforcing the positive sentiment in the market.
Note that this trend-following oscillating indicator had just sent a call to buy Litecoin on the daily chart (above). This happened during the early Asian trading hours on Monday when the 12-day exponential moving average (EMA) crossed above the 26-day EMA, adding credence to the positive outlook.
Things may go awry for LTC bulls if the price fails to close above the $100 level. This would signal weakness amongst the buyers with the coin dropping toward the support at $85. Other levels to watch on the downside are the 50,100, and 200 SMAs at $77, $72, and $64 respectively. Lower than that, the Litecoin price may drop to seek solace from the $46 support floor.
LTC’s Uptrend Turns On-chain Signals Bullish
Bolstered by Litecoin’s performance in January, retail investors have entered the market, perhaps in readiness to have a share of the profits if the price continues growing. According to on-chain data from IntoTheBlock, the number of addresses holding between 0 and 0.1 LTC has increased by 5% from 5.06 million on January 1 to 5.15 million at the time of writing. This is 9.3% higher than the 4.71 million addresses recorded three months ago.
LTC Small Holders
The increasing interest from small holders points to rising positive sentiment that may propel the price higher in the short term.
Litecoin’s bullishness also stems from its increased mining difficulty. According to a report by a crypto news outlet Bitcoin.com, Litecoin network’s computational power reached a record high of 798 terahash per second (TH/s) on Wednesday last week at block height 2,411,048. Litecoin’s mining difficulty also hit all-time high’s the following day at 23,505,031.
This increases the scarcity of the coin, which in turn increases its value. Litecoin also prides itself on being one of the most stable and reliable networks in the crypto space. According to a January 29 tweet from the developers, the blockchain has not experienced any downtimes in over 11 years marking the “longest uninterrupted uptime” in crypto history.
#Litecoin has zero downtime in over 11 years of existence. The longest uninterrupted uptime in #crypto. pic.twitter.com/JYqpyAVd2q
— Litecoin (@litecoin) January 29, 2023
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