Litecoin technical analysis: LTC/USD poised for a bullish flag breakout on hourly chart
- Litecoin outperforms its rivals, up over 12% over the last 24 hours.
- Bulls await a bullish flag confirmation for a fresh run towards 150 levels and beyond.
The fourth most widely traded cryptocurrency, Litecoin, staged a solid comeback on Saturday and regained the 130 handle, having extended Thursday’s recovery into a second straight session. As for Sunday’s trading so far, the LTC bulls appear to take a breather before attempting another run higher to retest the 13-month highs of 145.63.
Litecoin (LTC/USD) gained over 12% over the last 24 hours and now remains on track for the second straight quarterly rise. The coin has risen 48.10% so far this month, with a market capitalization of $ 8.23B, or 2.38% of the total cryptocurrency market cap.
From a technical perspective, the bulls are likely to extend control, as a bullish flag formation (a bullish continuation pattern) is spotted on the hourly sticks. Only a break above the 134 level will confirm the pattern (descending trend line resistance), with the further upside likely to open up towards the yearly tops of 145.63. The buying interest will pick up pace above the last, with the levels beyond the 150 barrier back in sight.
On the flip side, the horizontal 200-hourly Simple Moving Average (SMA) near 131 region continues to limit the immediate downside. Meanwhile, a strong cluster of supports are aligned near 130.05/129.27 (descending trend line support/ upward pointing 21-hourly SMA). Selling pressure could intensify below the last that could see the prices falling sharply towards the next support at 124.50, where the horizontal 100-hourly SMA guards the declines.
LTC/USD 1-hour chart
Levels to watch
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
