Litecoin price can reach $170 if LTC bulls clear this hurdle
- Litecoin price has seen an impressive run-up over the past four days, pushing it from $106 to $142.
- This uptrend can continue if LTC can flip the $137 to $142 supply zone into a demand barrier.
- A breakdown of the 50-day SMA at $133 could trigger a crash to $128 or lower.
Litecoin price has witnessed a massive rally over the past week as the crypto markets flip bullish. This sudden optimism is due to the recent uptick in buying pressure seen among BTC holders. LTC, on the other hand, faces a decisive moment that could help it multiply its recent gains.
Litecoin price looks to fulfill its upward potential
Litecoin price rose a whopping 33% in the last four days, surging from $106 to $142. This uptrend seems to be facing a blockade as it pierced the four-hour supply zone, extending from $137 to $142.
If buyers manage to push LTC higher and produce a four-hour candlestick close above $142, it will flip this hurdle into a foothold. Litecoin needs to form a base before facing a crucial resistance barrier at $153.
Clearing this ceiling is essential for LTC to continue its uptrend. Assuming the bullish momentum flips this resistance barrier into a support floor, investors can expect LTC to embark on another leg-up to $170, coinciding with the 200-day Simple Moving Average (SMA).
LTC/USDT 4-hour chart
Supporting this resistance sprinkled path for Litecoin price is IntoTheBlock’s Global In/Out of the Money (GIOM) model. This on-chain index suggests that LTC will face a hurdle from $172 to $185, where roughly 383,800 addresses that purchased 4.81 million LTC tokens are “Out of the Money.”
Therefore, a move into this territory will likely be met with selling pressure from investors that want to break even. Hence, investors can expect LTC to form a local top around this barrier.
LTC GIOM
Further depicting the short-term nature of this uptrend is the decline in new addresses joining the LTC network from 355,160 to 169,430 over the past three months. This 52% slump suggests that investors are not interested in LTC at the current price. Therefore, the last leg of this uptrend is likely to be choppy.
LTC new addresses
On the other hand, if Litecoin price slices through the 50-day SMA at $133, there is good chance profit-taking will push it down to $128. A four-hour candlestick close below this barrier will invalidate the bullish thesis and open the path to $116.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
