- Litecoin price shot up 8% in the last 24 hours despite bearish sentiment in the crypto market.
- Litecoin emerged as the second biggest asset by usage on BitPay in October.
- LTC still has to maintain its support at $56 to prevent a 23% crash to June lows of $43.
Litecoin price has been performing relatively better than most other cryptocurrencies since FTX’s collapse. Despite the fluctuations in the crypto market, Litecoin has sustained its demand which is evident in the altcoin’s usage.
In the month of October, the total transactions conducted on BitPay noted Litecoin emerging as the second biggest asset by use. Accounting for more than 25% of all crypto transactions, LTC stood right behind Bitcoin, which was responsible for 46.38% of all transactions.
Beating the likes of Ethereum and Cardano on the largest crypto processor, Litecoin has established itself as one of the most important cryptocurrencies. This could be essential in initiating a recovery for the asset.
Litecoin price looking for a breakout
Litecoin price is currently trading at $62.1, after a 22% rise in value since the FTX-induced crypto market crash. The altcoin began an uptrend about a week ago, which it has continued to maintain.
The presence of the blue dots of the Parabolic Stop and Reverse (SAR) underneath Litecoin price supports the bullish outlook. This indicator is used to highlight the currently active trend as well as possible reversals.
If this uptrend stays in effect, Litecoin could be on the way to tag the immediate hurdle at $64.3. Flipping this level into a support floor is crucial for Litecoin price to rise and breach the critical resistance at $67.3. If buying pressure sustains, LTC might be well on its way to reaching the May highs of $71.2.
LTCUSD 8-hour chart
Having said that, it is important for traders looking to long Litecoin to factor in the persisting fear of contagion. This could lead to a decline in the crypto market, affecting LTC’s trajectory as well. Should the bearishness impact the altcoin, Litecoin price could trickle down toward the support level at $56.1.
Any further decline from this level can push Litecoin down to the same price level it was at after the crash of November 9, testing $49.9 as critical support. A bounce there could prevent excessive drawdown. However, a daily candlestick close below $49.9 would invalidate the bullish thesis, leaving investors with only the hope of a recovery from the $42.9 June lows.
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