Litecoin Surges and Hits a New Yearly High
|LTC/USD has been in a rally mode since June 5th, when the price hit support near the upside support line taken from the low of May 9th. Yesterday, the crypto emerged above the 130.00 territory for the first time since May 2018, hitting a new yearly high today, slightly above the 140.00 zone. Then, it retreated somewhat, back below 140.00. Bearing in mind that Litecoin is trading above the aforementioned upside support line, as well as above a shorter-term one drawn from the low of June 6th, we believe that the near-term outlook remains positive.
Another push above the 140.00 zone may encourage the bulls to put the psychological zone of 150.00 on their radars. That zone is slightly below the high of May 14th, 2018, and it is also marked by the inside swing low of May 9th of the same year. The price could pull back from near that zone, but as long as it stays above the short-term upside line drawn from the low of June 6th, we would still see a decent chance for the bulls to step back into the game and push for higher levels. A clear break above 150.00 may pave the way towards the 160.00 zone, defined by the peak of May 10th, 2018.
Looking at our short-term oscillators, we see that the RSI, already above 70, has ticked up again, while the MACD remains above both its zero and trigger lines. These indicators suggest accelerating upside speed and support the notion for this cryptocurrency to continue trading north for a while more.
In order to start examining whether Litecoin has entered a correction mode, we would like to see a dip back below 130.00. This could allow declines towards the 121.00 zone, marked by the inside swing highs of May 27th and 30th, as well as the peak of June 7th. If the bulls are not willing to reenter the game near that zone either, then we could see the slide extending towards Monday’s low, at around 111.00.
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