Despite the growing pressure over Bitcoin, Litecoin sustains key support levels. Will this underlying support propel LTC price to the $208 mark?
As Bitcoin price BTC $92 784 24h volatility: 0.4% Market cap: $1.84 T Vol. 24h: $37.49 B drops to the $102,600 mark from the recent all-time high of $109,000, the altcoins are witnessing a minor pullback. As a close cousin, Litecoin LTC $82.33 24h volatility: 2.5% Market cap: $6.24 B Vol. 24h: $456.27 M has dropped by 2.76% over the past 24 hours.
With a price surge of 17% in the past week, currently, Litecoin currently holds a market cap of $8.88 billion. As the 20th biggest cryptocurrency in the market, per market-based valuations, Litecoin is preparing for an extended recovery rally. Will this recovery rally reach the projected price target of $208?
Litecoin Aims to Surpass $138 Neckline
In the daily chart, the Litecoin price takes a stand at the 20-day EMA line. This minor consolidation slows down the previous pullback of two consecutive bearish candles, accounting for a 15% drop. The pause in bearish momentum signals potential buyer interest.
Currently, Litecoin trades at a market price of $118, with a lower price rejection. Furthermore, the LTC price trend over the past few weeks projects an inverted head-and-shoulder pattern. This is a widely recognized bullish formation in technical analysis.
The neckline of the bullish pattern coincides with the 61.80% trend-based Fibonacci level at $138. Currently, Litecoin is preparing to form the right shoulder if it sustains to bounce back from the 23.60% Fibonacci level at $111. A successful bounce could confirm the bullish outlook.
Supporting the breakout chances, the crucial EMA lines maintain a positive alignment and give dynamic support. Furthermore, the daily RSI line maintains a positive trend. These indicators reinforce the likelihood of a recovery rally.
LTC Price Targets Extend to $208
In case of a breakout rally, the Fibonacci levels paint a price target at $165 and $208. However, Litecoin must surpass the psychological mark of $150 for an extended rally. Breaking this level is crucial to attracting further momentum.
On the flip side, the crucial support for Litecoin remains at the $100 psychological mark and the 200-day EMA line at $89.92. These levels provide a safety net for traders.
Litecoin’s Large Transaction Volume Doubles in 3 Months
Over the past few months, as Bitcoin started the bullish rally to cross above the $100,000 mark, the Litecoin network has seen a positive impact. As a close cousin, the large transaction volume over the Litecoin network has increased from $4.31 billion to $8.85 billion. This indicates growing investor confidence in the network.
The transaction volume reached a peak of $10.35 billion last weekend, a 100% surge over the past few months. With the growing network, the demand for LTC tokens in the broader market is likely to surge. Higher demand often translates to price appreciation.
Hence, the prices of Litecoin could witness a break above the $150 mark. Such a breakout would pave the way for higher targets.
With Litecoin showing positive on-chain metrics and supportive technical patterns, the cryptocurrency appears primed for a recovery rally. However, breaching the $150 psychological level remains critical to achieving the ambitious target of $208.
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