Litecoin Rally +10% Destruction Resistance, Are Bulls Back?

It has been a painful yet predictable market action following the Litecoin network reward halving, but signs of a reversal are starting to appear as Litecoin has already risen 9% this week, surpassing the first overhead resistance level. Perhaps this is a sign of things to come as the foundation for Bitcoin is laid.

Litecoin has been in a downward trend since July, losing 50% of its market capitalization, but it now appears to be ending after a rebound from its historical support level of $60. Since early September, Litecoin appeared to be forming an ascending triangle against the US dollar, and today it decisively broke out, rising to ~$77 in a single day.

The target for this breakout would be placed just below the next horizontal resistance at around $81, a break above would have the market looking for a near-term retest of $100 and a return to triple digits would be a very strong signal. Potential yearly highs back above $140. Today the same picture continues with the ltc/btc ratio as we saw a decisive break of resistance with the next stops at 0.008 and 0.01. All 50-day moving averages were exceeded, and the weekly moving average also exceeded the monthly moving average for the first time since June.

Litecoin appears to be currently in a rising channel and despite a brief rally, it is now back at the upper limit. This would be a reasonable place for some retreat or consolidation while the market evaluates its next steps.

We asked long-term Litecoin traders, investors, and community members. Finitemaz In response to his comments on the market, he jokingly responded:

“I’m making the most of Hopium right now.”

While Bitcoin trading has been mostly sideways over the past few months, many people are showing renewed interest in the sector, especially with the launch of Bakkt and Bitcoin futures next week.