(DAILY NOTION): LTC/USD: Bulls Are Reaching Key Resistance

Since the beginning of this week, the LTC/USD bulls have gained momentum to rise from $164 at the start of the week to the present high of $195.36. At the time of writing, the bulls are taking a slight breather with LTC/USD standing at $191.84. It is presently above its 50-day Simple Moving Average, which is represented by the purple line in the chart below. Meanwhile, the Relative Strength Index has increased from an oversold condition of 16 to its present 64, indicating that buyers could be taking advantage of this pullback.

Source: Yahoo Finance

Analyst John Isige from FX Street believes that if the bulls can surge past $200, next resistances lies between $218 to $224, where approximately 50,000 addresses bought about 750,000 Litecoin, as indicated by the In/Out of the Money Around Price (IOMAP) model. Isige further reports that should the bulls be successful in their endeavour to get through this buyer congestion area, it would pave the way to $250. Meanwhile, the bears must overcome the hurdle of buyer congestion around $171 and $177.

However, Isige also cautions about the formation of a death cross on the four-hour chart, pointing towards a bearish trend and this makes it crucial for the bulls to break through the $200 to hold the reins and overcome the bears.

At the time of writing, data from Coin Market Cap shows that the total market capitalisation of Litecoin stands at $12.8 billion, against a total cryptocurrency market capitalisation of $1.57 trillion.

The cryptocurrency, which went live in October 2011, was created by Charlie Lee, who is a former Google employee. Lee envisioned a ‘lighter version’ of Bitcoin, in terms of weight and hence, the name 'Litecoin'. According to Coin Market Cap, Litecoin has maintained its position in the top ten cryptocurrencies (in terms of market capitalisation) since its launch.

LTC/USD (as of Mar 4, 2021, 10.15 a.m., GMT +8) - $191.84