Disclaimer: The results of the following analysis are the author’s sole opinion and should not be considered investment advice.
Bitcoin’s growth last month accelerated the crypto market’s bullish recovery efforts. The spillover effect of this growth in the altcoin market is quite evident, especially in the double-digit monthly growth.
As a result, Litecoin [LTC] Buyers found fresh pressure, prompting a rally above the 20 EMA (red) and 50 EMA (cyan).
A close above the current cap could increase the likelihood of further upside ahead. At press time, LTC was trading at $61.175.
LTC daily chart
After recovering more than a third of its value in the past three weeks, the altcoin’s efforts to change the bearish trend are finally bearing fruit. With the ascending channel (white) in place, the bulls have established a foothold outside the limits of the 20/50 EMA.
Since flipping the 5-month trendline resistance to support, the bulls have struggled to break the $61-62 resistance. With the 20 EMA (red) still looking north, a buying bounce could keep the alt oscillating in its pattern. In this case, a potential target would be the $68 area near the upper trendline of the ascending channel.
Bulls need to find a close above its immediate resistance range to increase the chances of a sustained recovery. Any break below this pattern would suggest a trend reversal and could confirm a sell signal.
The Relative Strength Index (RSI) struggled to hold above the 60 mark while painting a slight advantage for the bulls. Continued volatility above the equilibrium zone will be positive for the bulls.
However, a bullish divergence in OBV can help buyers maintain the current pattern and continue the growth phase. However, it needs to overcome resistance to confirm a strong buying advantage.
Also, the MACD line is showing a bullish edge as it hovers above the zero line.
Given the bullish crossover of the 20/50 EMA with a bullish engulfing candlestick on the daily chart, buyers are aiming to continue this pattern movement. The goals will remain the same as discussed. A reversal from the $68 area or the pattern’s lower trendline would suggest a sell signal.
Finally, LTC has a 95% 30-day correlation with King Coin. Therefore, keeping a close eye on Bitcoin’s movements is crucial to making profitable moves.