Litecoin (LTC), a popular cryptocurrency, has been experiencing a steady uptrend following the recent market crash. The token’s trading volume has surged by 16% and its price has risen by 7% in the past week, according to CoinMarketCap.
This bullish momentum has been attributed to consistent buying pressure from investors. Technical indicators such as the Relative Strength Index (RSI) and Money Flow Index (MFI) have shown a gradual increase in buying activity, suggesting that more funds are flowing into Litecoin than out.
However, while the current trend is positive, traders should remain cautious of potential reversals. The Awesome Oscillator (AO) indicates that the strength of the uptrend may be weakening, suggesting a possible short-term pause or reversal.
Despite this, the bullish thesis is reinforced by the Simple Moving Averages (SMAs). The 150-day SMA has shifted below the price, indicating a long-term positive trend. Additionally, the 50-day SMA is attempting a bullish crossover above the 150-day SMA, suggesting a strengthening bullish momentum.
Also Read: Litecoin Soars 10.32% As Whale Activity Hits $17.3 Billion
If Litecoin can break through the $68 resistance level, it could potentially reach $79. However, there is a risk that the resistance level may hold if investors who bought between $65 and $69 decide to sell to mitigate losses.
In the futures market, there is a slight bearish bias towards Litecoin, with more short positions than long positions. This suggests that some traders may be anticipating a potential price correction.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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