Altcoins

Litecoin could see these levels before continuing its current rally

With the graduation of its current bullish rally, Litecoin (LTC) lastly traded above the 20/50/200 EMA whereas rising inside an ascending channel (white). In the meantime, the bulls stored testing the $126-resistance.

A sustained shut under the $126-mark may propel the alt to retest the $122-$123 zone earlier than the bulls proceed their shopping for spree. Any shut under its 20 EMA (crimson) would result in a patterned breakdown in the direction of the $120-mark that coincided with its quick trendline help (white, dashed). At press time, LTC traded at $125.5.

LTC 4-hour Chart

LTCUSDT 2022 03 27 16 48 29

Supply: TradingView, LTC/USDT

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After the alt plummeted in the direction of its 14-month low on 24 February, the bulls lastly stepped in to defend the $90-base. Because of this, LTC registered an over 39.52% ROI over the previous month. LTC bulls shortly took benefit of the general notion and flipped the three-month trendline resistance to help.

Because it recovered its earlier sell-off loss, it discovered a snug shut above its close to and long-term EMAs. Additionally, the hole between the decrease and higher band of the Bollinger Bands (BB) is lowering. This studying entailed a continued tight part within the close to time period.

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Whereas the bears make sure the $126-ceiling, a possible retest of the decrease trendline of the up-channel appeared doubtless. Following this, the bulls can be eager on conserving their edge intact and attempt to topple the $126-mark. Any fall under the sample may discover testing grounds close to the decrease band of BB and its trendline help.

Rationale

Capture 46 scaled

Supply: TradingView, LTC/USDT

The RSI witnessed decrease peaks whereas the value examined its quick resistance over the past two days. This trajectory revealed a barely weak bearish divergence of the RSI with the value. Any reversals would proceed to seek out midline help.

Additional, the CMF depicted a bullish edge because it endeavored to check the 0.21 degree. A fall under this degree would affirm a hidden bearish divergence with value.

Conclusion

Contemplating the present squeeze part on its BB together with the potential divergences, LTC may see a near-term setback earlier than the bulls collect pressure to snap the $126-level.

Apart from, LTC shares a whopping 86% 30-day correlation with the king coin. An in depth eye on Bitcoin’s motion can be crucial to make a worthwhile transfer.

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