The fourteenth largest cryptocurrency by market capitalization has posted nearly 35% gains over the past week. Litecoin’s explosive growth has triggered a rally to $270.40. The fourteenth largest cryptocurrency by market capitalization has posted nearly 35% gains over the past week. Litecoin’s explosive growth has triggered a rally to $270.40. The LTC network has witnessed a spike in on-chain activity, and perpetual swaps volume has crossed $7.54 billion. A perpetual swap is a derivative where users buy or sell the value of the underlying asset. Perpetual swaps volume is considered a key indicator of demand for the asset by market participants. The Litecoin price, in terms of United States dollars, has rallied by more than 150% after bottoming out near $103 on July 20. But the “silver to Bitcoin’s gold” cryptocurrency’s massive upside move has also triggered a bearish reversal outlook, indicating that its ascent is due for a pause.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

A retest of $232.94 will be the buying opportunity for investors who missed the first spike in price. The bounce from this barrier will likely push Litecoin price to shatter the 50% Fibonacci extension level at $258.84, serving as a secondary confirmation of the bull rally. LTC will continue this ascent if the bullish momentum continues to pour in, allowing it to retest the 70.5% Fibonacci retracement level at $322.31.

While a further ascent of LTC market value is possible, Litecoin price needs to produce a daily close above $348.63. Assuming it does, the buyers will likely push the altcoin to retest the range high at $413.65. This move, however, would constitute a 77% gain from $232.94. Regardless of the bullish outlook, Litecoin price needs to produce a daily close above $258.84 and hold the $232.94 support level. Failing to do so will likely result in a downtrend to $189.75. While LTC might bounce off this barrier to restart an uptrend, a daily close below it would produce a lower low, invalidating the bullish thesis.

In such a case, Litecoin price would revisit the proximity support floors at $117.90 or $170.61. 

Litcoin reaching for critical support zone

Nov 12 2021