Litecoin continued to consolidate above $35 after the crypto-asset briefly breached the $40 mark, at press time. The token, while able to procure a sense of stability in the market, hasn’t, however, surpassed its resistance at $43.17 since 20 March
At press time, Litecoin continued to maintain its position at 7th with a market cap of $2.58 billion. Its 24-hour trading continued to surpass its market cap with $3.75 billion in registered activity.
Litecoin 12-hour chart
Over the course of 2020, Litecoin has undergone a series of ups and downs, something that was highlighted by the tremendous hike towards the start of January. The token witnessed a massive bullish break, 15 days prior to a declining trend seen since 14 February. In fact, in mid-March, Litecoin scaled by almost 44 percent in 2 weeks and registered a high of $84.
It has been all down south from thereon.
With the global financial system facing a meltdown, the collective crypto-industry and Litecoin faced a drastic drop. Litecoin recorded a busted pattern from a descending channel as the token registered its lowest valuation on 13 March with a price of just $24.
Litecoin’s stability and current consolidation
In light of the above scenario, it is important to note that Litecoin made a fast recovery and has largely maintained its valuation above support levels of $34 since 19 March. Over the past week, Litecoin’s price has witnessed a squeeze and given shape to the ascending triangle pattern. Litecoin’s value bounced back from the trendline at $27, $29 and $34, confirming the validity of the pattern.
Considering a bullish breakout is followed under a week, the price should be able to breach immediate resistance at $43. Theoretically, a trading target for the coin after the break should be between $43 and $48 as the VPVR suggested that trading activity has been substantially high in that range.
The token also maintained its consolidation above the PoC line, a development that suggested that the crypto-asset could be out of bearish grasp, at the moment.
Considering the fact that the Relative Strength Index has gradually improved as well after the gradual decline, the narrative, at press time, was fairly bullish. Over the next week, Litecoin’s ability to overcome resistances at $43 and $48 will be crucial, otherwise, the possibility of sideways movement becomes a likely scenario.