Litecoin (LTC) is performing at its peak levels as seen in the past five days.
LTC exhibits the formation of a rising parallel channel pattern
LTC price is down by 0.69% as of this writing
LTC price on a 5-day straight rally registered a growth of 21.4%
LTC is having a bull run as validated by the formation of a rising parallel channel pattern touching the key resistance seen at $66.
The key resistance zone has been a major hurdle for LTC hindering any bullish growth for the past couple of months, hinting at a price reversal.
Nonetheless, even if the LTC price can break through the resistance zone, there are still more junctures in the road.
Litecoin Manages To Hold Above $53.5 Support
The crypto market has been taking the low blows with major corrections going on that further toppled down BTC and other major altcoins in 2022.
Even though Litecoin did suffer through a retracement, the support of buyers has allowed the altcoin to hold above the key support zone of $53.5.
According to CoinMarketCap, LTC price has plunged by 0.69% or trading at $82.59 as of press time.
The support level has been retested multiple times which allowed the bulls to come back stronger on September 7.
Moreover, the bullish reversal also helped with sustaining the buying momentum and the rising parallel pattern which hoisted the recovery of LTC in the past three months.
LTC price has been on a surge for the fifth straight day, tapping on the growth of as much as 21.4%.
The bullish streak has touched the monthly key resistance of $66 and showing some difficulty to climb further. Any signs of bearish reversal at this point will trigger a price decline back to hoist the trendline.
LTC To Experience Corrections
On the other hand, if the coin buyers can successfully break the barriers of the overhead key resistance zone, the LTC price could potentially spike 6.8% higher before it can touch the trendline.
Further, the LTC price may revert from the resistance level and start a bearish trend.
Additionally, the rising channel patterns formed are presumed to trigger further downtrends. With that in mind, the LTC price has a strong tendency to breach the key support line, strengthening the bearish momentum.
Hence, until LTC prices fail to breach the key resistance level, Litecoin may encounter corrections.
The 20- and 50-day EMAs are spotted swerving sideways showing that the bearish momentum could be faltering.
More so, the bearish crossover seen sliced between these slopes strengthens the $66 resistance. Litecoin’s RSI is also seen to spike higher and look bullish showing growth in investor and buyer confidence.
LTC total market cap at $4.4 billion on the daily chart | Source: TradingView.com
Featured image from Blogtienao, Chart from TradingView.com