Litecoin (LTC)is roughly 20% from June 2023 lows, increasing as traders expect even more gains in future sessions. From the daily chart, LTC buyers are in control.
Even though there are contractions and attempts to reject higher highs, the path of least resistance is northwards. In the medium term, $100 is a vital liquidation level.
For the uptrend to be valid, there must be a solid, high-volume close above this level. In that case, LTC could rally towards $120 or better.
Traders may look for entries if prices are above $85 and $80. This support zone is a critical reaction point that may anchor the leg up towards $100 or better in sessions ahead.
Improving Market Conditions
Traders are banking on shifting investor confidence, retail and institutions, for the next leg up. As it is, the critical reaction points at $85 and $100 would shape the current formation.
Even so, fundamental factors would inject momentum, driving prices in either direction. The direct correlation between Litecoin and Bitcoin has helped steady LTC prices.
If the United States Securities and Exchange Commission (SEC) approves the BlackRock Bitcoin Spot Exchange-traded fund (ETF), prices could rip higher, lifting Litecoin with it.
Along the way, Litecoin halving is in a few weeks in August, an event that would make LTC even more scarce. With fewer coins in circulation, LTC prices could rise if demand remains at the same level or even increases.
Litecoin (LTC) Price Analysis
Losses of June 10 were reversed, though trading volumes are lighter. Nonetheless, LTC may find support as prices recover from the pits of June.
Traders can ride last week’s trend, buying on dips above the support zone at $80 and $85. On the other hand, gains above $95 or June 2023 highs could lift LTC towards April 2023 highs. In confirmation of last week’s gains, this breakout must be with above-average volumes, ideally exceeding those of June 10.
In that case, the LTC leg-up will be anchored appropriately from an effort-versus-result perspective, providing the impetus for $100 in a buy-trend continuation.
Deep losses below $80 invalidate this preview.
Technical charts courtesy of Trading View.
Disclaimer: The opinions expressed do not constitute investment advice. If you wish to make a purchase or investment we recommend that you always conduct your research.
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