Contributor
Posted on: September 28, 2024
Litecoin has broken out of an ascending triangle pattern amid increased purchase volume. Forex inflow data shows that sellers remain absent, suggesting confidence in the uptrend.
Litecoin (LTC) is up 12% in the past 30 days and 5% in the past 7 days. At the time of writing, LTC is trading at $69, with trading volume per CoinMarketCap increasing by over 16%.
Litecoin broke out of an ascending triangle pattern on the daily chart after overcoming strong resistance at $67. This breakout suggests strong bullish momentum.
This breakout was also accompanied by increased buying pressure. The green volume histogram bar indicates that buyers are overwhelming sellers, providing the basis for a sustained rally above this breakout zone.
Source: TradingView
Bullish momentum has been gaining momentum since the price broke above the 100-day simple moving average (SMA). If this trend continues, LTC’s next target will be the 200-day SMA of $76.
Technical indicators turn bullish
The Moving Average Convergence Divergence (MACD) indicator strengthens the bullish case for Litecoin. The MACD histogram bar has turned green and is now positive. This indicates that the current uptrend is strong.
The MACD line is also positive and above the signal line, further confirming that the bulls are in control.
Source: TradingView
Looking at the Relative Strength Index (RSI) line of 63, we can see that buyers are overwhelming sellers. The RSI line has also reached a new high since August, indicating increased interest in LTC.
If sales activity remains subdued and buyers continue to drive sales activity, Litecoin could be poised for further gains.
According to FX inflow data, there has been a noticeable decline in FX inflows since LTC rose above $66, suggesting selling interest and lack of confidence in the upside.
Source: Into the Block
Liquidation data and funding rates
Litecoin is approaching the high liquidity zone above $70. High liquidity zones tend to act as strong resistance levels as there is a lot of selling pressure that makes it difficult for the price to rise.
Source: Coinglass
If LTC continues to rise and enters this zone, it may cause price fluctuations. However, LTC could break out if there are a large number of buy orders that strengthen the bullish momentum.
Read Litecoin (LTC) price prediction for 2024-2025
Looking at Coinglass’ funding rate, we can see that there is positive sentiment regarding Litecoin.
LTC funding rates have been primarily positive over the past 7 days, suggesting that the majority of traders are long and betting on further price appreciation.
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