If Litecoin (LTC) draws a price trajectory similar to Ethereum’s, it could climb to $ 250 in days.
Litecoin dropped from the highs of $ 186 to a low of $ 111 in 48 hours (January 10-11), dashing hopes of the bulls for a jump to $ 200. Also, this meant LTC was lagging as large assets reached their all-time highs. While the coin is slightly off the all-time high set in 2017, it is likely that the latest bullish trend could see an LTC / USD target of $ 250.
As Ethereum leads with impressive performance, the growing buying pressure around altcoins that appear to be worthwhile can be the catalyst for Litecoin.
According to the on-chain analytics platform Santiment, LTC has returned to the purchasing zone as suggested by the market value actual value (MVRV) measure. The indicator looks at the profit or loss situation of the altcoin based on when it last moved on the chain.
Litecoin’s 30-day moving average MVRV value is just rising to show that current prices offer a buying opportunity.
Litecoin price analysis
Litecoin price wants to consolidate above a downtrend line that has been limiting its upward movement so far.
A higher move above $ 155 will bring the $ 160 resistance level into focus and further invalidate the perspective of the head and shoulders (H&S) pattern of the recent bearish trend on the daily chart.
Therefore, keeping prices above the neckline of the H&S model, and the 20-day and 50-day exponential moving averages show that the bulls can successfully target higher levels.
The outlook will be strengthened if buyers move above $ 160 and regain control over the supply wall around $ 165.
The daily RSI is positive above 50 to show that the LTC / USD pair has room to rise if resistance at $ 165 is broken. This move will likely require more buy orders around $ 180-200, as the upward trend continues if these levels are reached in the short term.
On the 4-hour chart, Litecoin price formed a solid support zone around $ 120-130. The bulls have managed to keep prices above the 50-EMA ($ 139) and the 20-EMA ($ 145) since they rose above $ 130 on February 01, 2021.
Most importantly, LTC / USD initially stands above a horizontal support line acting as a strong resistance. If buyers break above the downtrend line formed on January 10th on the 4-hour chart, the main target will be the aforementioned $ 180-200 zone.
If the LTC / USD price drops below $ 140 in the higher timeframes, invalidation of the above scenarios will apply. The highlighted bullish outlook could turn negative and bearish if Litecoin continues to decline and breaks the major support from $ 120 on the daily and weekly logs.
As seen in the chart above, the final reward for bears will be a trend for the 20-EMA ($ 107) and 50-EMA ($ 81).