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Litecoin’s technical staff (LTC) suggests that it can register a large high of $100 if bulls keep above $70
Litecoin’s spot price reflects the rest of the altcoin market, with the LTC trading for about $70 after falling more than 6% in the last 24 hours. Cryptomoeda is also trading almost 18% lower over the past seven days.
At the moment, Litecoin’s bulls are trying to keep the bears away around the critical $70 support level. If they can turn the momentum to their side, the increased buying pressure could bring the price of the LTC up to $80. Above that price level, bulls can target $100.
On the contrary, the continued collapse observed Bitcoin Union over the past two days could cause Litecoin to fall to lows of $65.
Litecoin Price: Technical Perspective
The LTC/USD currency pair recently dropped below 50-SMA ($81.02) and 200-SMA ($75.72) on the 4-hour chart.
The Relative Strength Index (RSI) shows that the cryptomaniac is trending overdrive but with a hidden bullish divergence.
LTC/USD 4-hour chart. Source:TradingView
Although bears appear at the top of the short-term action, the technical perspective suggests that a bullish reversal is the next immediate direction for LTC/USD.
The 4-hour chart above shows that Litecoin is near the tip of a downward wedge pattern. The formation of the pattern indicates that the bulls will likely see a major breakout. If the scenario unfolds as expected, recovery to 200-SMA ($75.72) and 50-SMA ($81.02) could leave the bulls at the psychological level of $100.
On the daily chart, the LTC/USD currency pair is slightly above 50-SMA (69.81), which is critical for bulls to avoid further losses. However, the potential for a big disadvantage is unlikely given the difference to 200-SMA ($54.27). This suggests that bulls tend to absorb the immediate downward pressure and fight the desire of bears.
The possibility of a bullish reversal will increase if a potential buy signal appears in the next trading session. Currently, the daily TD Sequential indicator has printed a red eight candlestick and the appearance of a red nine can signal an influx of bullish pressure.
The bullish action for the LTC bulls will face slight resistance at the 61.8% Fibonacci retracement level ($75.22). A break above this obstacle would cause bulls to face resistance at the 23.6% Fibonacci retracement level ($86.26).
If bulls cannot hold prices above $70, a drop to $65 is likely. As shown on the daily chart, the level may provide a double bottom pattern.