Litecoin Price Analysis: Why LTC/USD $60 consolidation is key for the next rally above $80?

The cryptocurrency market is in the green mid through this week’s trading. The Asian session on Wednesday has been characterized by a subtle bullish action even for Litecoin. The digital asset is struggling to hold onto the 0.35% gains made on the day while focusing on penetrating the barrier at $62.

Litecoin is currently holding the seventh position on the market with a market cap of $3.9 billion. Its trading volume, according to the data by CoinMarketCap has increased significantly in the last three days from $4.3 billion posted on March first to $5.3 billion at the time of writing.

Litecoin MimbleWimble protocol testnet to launch in summer

The developer of MimbleWimble, a privacy and fungibility protocol for the Litecoin network in his recently released February progress review, David Burkett said that the testnet could come out in summer 2020. The release will have all block and transaction guidelines in addition to the initial version of a peer-to-peer messaging platform, transaction pool as well as synching. As expected blocks in the new protocol will be mined by the network’s blockchain.

Litecoin price technical analysis

Looking at the hourly chart, Litecoin is trading above the 50 SMA, which is providing it with immediate support. Consolidation seems to be taking center stage above $60 while recovery is limited under $62.

Two patterns with potential to send Litecoin in a trajectory back to levels above $80, are currently capping the movements north. In other words, to fully utilize the impact of the falling wedge pattern and descending channel, Litecoin bulls must strive to break above their resistances.

Meanwhile, technical indicators such as the RSI and the MACD show that bulls are on relatively in control. The RSI is gradually moving northward above 50 (indicator average) while the MACD is holding ground slightly above the mean line in the positive region. A catalyst is necessary to blast Litecoin out of the comfort zone above $60 to battle with more resistance barriers at $70 and $80, respectively.

LTC/USD 1-hour chart