- Litecoin price produced an 8% rally, surging past a key resistance level.
- LTC shows potential to rally towards $100.
- Invalidation of the bullish trend is a breach below $61.
Litecoin price displays convincing evidence that a countertrend rise could occur. Key levels have been defined to interpret LTC's potential move.
Litecoin price back to $100
Litecoin price has been on every trader's radar as the "Silver to Bitcoin's Gold" token has displayed strength in the market while other cryptocurrencies fell short. On January 2, LTC is up 8% on the day as the bulls have produced a bullish cross between the 8-day exponential moving average and 21-day simple moving average.
Litecoin price currently auctions at $75.41. The surge also enabled the bulls to reconquer the median line of a parallel trend channel that acted as resistance on several occasions in 2022. The newfound bullish influence should allow Litecoin to rally toward the other side of the parallel trend channel near $100.
LTC/USD 1-Day Chart
A Fibonacci retracement tool surrounding the steepest declining rally from the November 2021 high at $306 and the 2022 low at $40.52 shows the current trading price just below the 23.6% Fib level. If the market is genuinely bullish, the LTC price could rally into the 50% variant at $111 and potentially the golden pocket, the 61.8% Fib level at $141, in the coming weeks.
Still, traders looking to partake in the speculative countertrend play will need to assess their risk accordingly. Invalidation of the bullish thesis would depend on the December 21 swing low at $61 remaining untagged. If a breach occurs, the bias could re-route south and see the bears tackle the 2022 low near $40.52 in the process, resulting in a 46% decline from the current market value.
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