Litecoin maintains crucial support levels, paving the way for a potential rise towards $94 and beyond.
Litecoin (LTC) kicked things up a notch, shoving past the local resistance at $89.3, setting the stage for a slow crawl higher. This ascension was happening sans a cocktail of heavy demand, though, so the move was likely to be less like a rocket and more like a snail.
A peek at our crib on TradingView revealed that Litecoin went marching triumphantly above the 78.6% Fibonacci retracement level, a feather in the cap of the bullish brigade. This sight of buyers getting the upper hand gave the green light for the $96 mark, which could be within reach in the coming days.
Litecoin outruns a key Fibonacci retracement level, gearing up for a dash higher
Source: LTC/USDT on TradingView
Lately, Litecoin's trading volume had been on the heels of a bull run - scampering from $83.2 up to $91. The MACD was strutting its stuff, waving its flags of bullish vibes, but the CMF, our chum, was somewhat of an oddball.
Although the volume was on the up 'n' up, the CMF still lurked beneath the +0.05 "strong-inflow" line, suggesting that Litecoin's current surge was led by an elevated number of investors but definitely not a groundswell of support.
Though the rally narrative didn't get an immediate zilch, it took a hit if demand tapered off. If that happened, we might see a tumble back to $83.
Give or take due to demand fluctuations, Litecoin ought to stay above $82 to keep the rally ball rolling.
A flurry of short liquidations might lead Litecoin to $94
Source: Coinglass
A slew of short liquidations was piled up around the recent local high at $93.5, as per data from Coinglass. These baby clusters often act like a sponge, sucking in price, hence it's likely that we'll see Litecoin drifting in their direction in the days ahead.
As Coinglass highlighted, a strip of liquidity had formed over the past couple of days, stretching from $85 to $80, while $94 transformed into a magnet for the price. The inference? A temporary dip to $85 was possible, but Litecoin could rebound to $94 and beyond. A swan dive to $80 was theoretically conceivable, but it appeared remote considering how the $83 support had been staunchly defended for the past fortnight.
Disclaimer: The information presented does not constitute financial, investment, trading, or any kind of advice and is solely the writer's unhinged opinion
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Enrichment Data:The Current Picture:- Litecoin's anticipated uptrend could potentially see it vista-ing the mid-$90s, with major support at $83 acting as a safety net.
- Forecasts suggest Litecoin reaching a peak of around $92.69 by May 2025, marking a 12.32% increase from current levels.
- However, there's also the chance of a momentum collapse that could drag prices down to around $62 in early June 2025, if the bullish push gets axed.
- Keeping a close eye on the $83 support level is crucial, as it acts as a foundation for any future bullish moves.
- Network activity and fundamental strength suggest the $83 support level is robust, fostering resilience against deeper slides.
- More ambitious forecasts predict Litecoin could soar to $126 to $160 by late April or May 2025, weather permitting a sustained bout of positive market sentiment.
- The surge in Litecoin's price is getting closer to overpowering the $96 mark, according to the chart, which could happen soon.
- The rally in Litecoin might not be entirely based on heavy demand, as the CMF suggests a higher number of investors, but not a groundswell of support.
- In the crypto market, altcoins like Litecoin can experience retracement, and if demand tapers off, it might lead to a tumble back to $83.
- Despite potential fluctuations, Litecoin needs to stay above $82 to continue its rally, while $94 serves as a magnetic pull for the price.
- The recent liquidations of short positions around the local high at $93.5 could cause Litecoin's price to drift towards that level due to the pulling effect of these liquidation clusters.
