• Litecoin price action undergoes some profit-taking around the crucial technical indicator.
  • LTC set to continue on the wings of the relief rally after some positive signals out of Moscow.
  • Expect the relief rally to continue over into the end of the week, with around 11% of gains on the table.

Litecoin (LTC) price formed a big bullish candle yesterday as a relief rally sparked by news that Russia will pull back some of its troops from the Ukrainian border took place during European trading hours. This created a massive tailwind that lifted stock markets and cryptocurrencies to solid intraday profits. With some profit-taking today, the rally still looks strong enough to continue and could provide Litecoin bulls with the necessary fuel to break above the red descending trend line dictating the downtrend since December 08.

Litecoin set to book at least 10% gains by the end of this week

Litecoin price action saw its rally cut short at the 55-day Simple Moving Average (SMA) yesterday, with global markets on the front foot after some positive signals out of Russia. Investors quickly put money to work and bought into several equities and cryptocurrencies. Around 6% of gains got booked in the process, and another 10% is on the cards by the end of the week if this positive sentiment keeps playing out.

LTC price will first take a short step back today with some profit-taking, but expect to see a breach above the 55-day SMA once the US volume kicks in. From there, $131.58 to $139 represents a 5.5% gain potentially on the cards today. If bulls can pull it off, or if more positive signals emerge out of Russia on de-escalation, expect the red descending trend line and its downtrend to be broken, and bulls to march on to $145 with the monthly R1 as resistance and around 10% of profit in the process.

LTC/USD daily chart

LTC/USD daily chart

Alternatively, the rejection may be bigger-than-expected, and with the Relative Strength Index (RSI) dipping a little bit, it could be the case that bulls have left the window open for bears to blindside them and push price action further to the downside. The scales could tip towards more selling as bulls sell to book profit and the price drops more than foreseen. LTC price could dip back to $120 for another monthly pivot test and then overshoot towards $115 with the green ascending trend line nearby acting as support.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Crypto Today: Bitcoin, Ethereum and XRP what to expect as SEC executive says Howey test applies to cryptos

Crypto Today: Bitcoin, Ethereum and XRP what to expect as SEC executive says Howey test applies to cryptos

Bitcoin trades above $62,500 on Monday, sustains above key support as head of US SEC enforcement division says Howey test applies to cryptos. Ethereum and XRP trade above key support, extending gains by nearly 3% on the day. 

More Cryptocurrencies News

Ripple whales buy hundreds of millions of XRP tokens as the altcoin rallies

Ripple whales buy hundreds of millions of XRP tokens as the altcoin rallies

Ripple (XRP) noted the highest weekly gains in 2024 over the weekend as XRP holders celebrated the one-year anniversary of Judge Torres’ ruling in the SEC vs. Ripple lawsuit. XRP rallied to a peak of $0.5661 on Saturday, July 13. 

More Ripple News

Bitcoin surges past $60,000 as ETFs report $1.04 billion inflows last week

Bitcoin surges past $60,000 as ETFs report $1.04 billion inflows last week

Bitcoin breached above the descending trendline on Sunday and trades 3.5% up at $62,924 at the time of writing on Monday. On-chain data indicates a decrease in miners' selling activity, complemented by US spot Bitcoin ETFs recording $1.047 billion in inflows last week. 

More Bitcoin News

JasmyCoin price surges following partnership with NOWPayments

JasmyCoin price surges following partnership with NOWPayments

JasmyCoin price breaks above a descending channel, signaling a break in market structure from bearish to bullish. NOWPayments announces its partnership with JASMY in Japan. JASMY featured in a Forbes article for coins outperformed Bitcoin in the first half of 2024.

More Cryptocurrencies News

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows.

Read full analysis

BTC

ETH

XRP