Litecoin LTCUSD
After yesterday’s pause, the Litecoin price is higher again this morning. However, there are signs that LTC’s impressive run may take a step back. The recent return to form for the cryptocurrency market has been kind to Litecoin. Since dropping to $103 in July, LTC has gained 64%. However, it remains to be seen whether this bull run can take the Litecoin price even higher.
Altcoins are typically highly correlated to both Bitcoin and Ethereum and often much more volatile. This is true of LTC, which was designed to offer a leaner, greener version of BTC. And therefore, how the market leader performs will decide where Litecoin is heading to a certain extent. And at the moment, Bitcoin is glued to the important 200-day moving average at $45,240. This is significant, not just for BTC but for the market as a whole.
If Bitcoin convincingly clears the 200 DMA and makes a run at $50,000, the Litecoin price could soon find itself with a new big figure. However, if BTC fails, Litecoin will undoubtedly follow suit.
Although the bulls will have welcomed the recent run, the daily chart shows significant resistance above the market. Firstly, LTC is struggling to breach the 100-day moving average at $174.42. Furthermore, the 200 DMA at $191.87 adds to the obstacles in the path to $200.
Additionally, over the last three weeks, the one-way price action has lifted the Relative Strength Index (RSI) to 68.56. This signals the price is close to overbought and may experience a period of consolidation or even a pullback. However, what happens next is reliant on the performance of the top-ranked cryptocurrency. And therefore, traders must pay close attention to events at the top of the league table. If BTC is pushed higher, Litecoin will clear out resistance and target February’s $247 high. If the reverse is true, the Litecoin price sees support at $150.00, and following that, 50 DMA at $137.50 is all that stands in the way of a return to $105.
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