The Litecoin price is grinding sideways in a narrow range, capped by the 200 DMA and unable to take inspiration from Bitcoin’s strength. Litecoin (LTC) has closed between $174.80 and $180 in each of the last six trading days, which could be a worrying sign considering BTC’s relentless advance. However, if LTC can muster the strength to clear the 200-day moving average at $189.31, it could embark on a bullish run of its own. On the flip side, if the Litecoin price drops below $160, it could spell disaster for the bulls.
Growing confidence that US regulators will soon sign off on a Bitcoin-based ETF has pushed BTC to a five-month high of $57,000. However, unlike in previous bull markets, Litecoin is yet to respond with a rally of its own. Despite the cryptocurrency market climbing to a combined market cap of over $2.3 Trillion, LTC is worth less than in February. At last glance, Litecoin’s market cap is around $12.15 billion, ranking it as the 14th-largest cryptocurrency. However, 15th-ranked Shiba Inu (SHIB), at $12.1b, is breathing down LTC’s neck. Although LTC has improved by around 25% from the September lows, it remains a similar distance from the September high. Furthermore, at $176, the Litecoin price is 57% below May’s multi-year high of $413.90.
The daily chart shows that Litecoin is compressed between the 50-day moving average (DMA) at $174.69 and the 100-day at $160.45. Whilst the 50 DMA is the first resistance level, the longer-term 200-day indicator at $189.32 is the more significant. As long as the 200-day caps the price, the 100 DMA is in danger of giving way. If the Litecoin price loses the support of the 100 DMA, a return to September’s $140 low appears inevitable. Furthermore, if the Bitcoin rally runs out of steam, LTC may extend towards the psychological $100 barrier.
However, if Litecoin responds to Bitcoins strength and clears the 200 DMA, the bulls will be back behind the wheel. In that event, bullish momentum could drive the price towards the $238 ‘Walmart high’. Moreover, if BTC achieves a new record price in Q4, LTC may exceed $240 and extend north of $300. However, the outlook remains neutral until the price breaks free from the $160-$190 range.
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