On January 30, Litecoin (LTC) appeared on US Dollar and Bitcoin (BTC) charts, climbing more than 20% to secure its place as the highest daily gain among the top 10 cryptocurrencies ranked by market value.
Investors will remember that in 2019 Litecoin led the rally in Ether (ETH) and Bitcoin, pumping more than 350% from January to June. As such, the recent alternative currency price shift will trigger strong emotions among traders who may interpret the reversal of the alternative currency trend as the start of a broader recovery in the cryptocurrency market.
Litecoin has reached its highest level in 4 months
The LTC / USDT 200-DMA pair broke its highest trading volume since April 2019, when the price rose from $ 59 to $ 99. In addition to breaking out of the downtrend channel, Litecoin also rose above the high volume node in the profile area to $ 55- 58, and now a weekly high of $ 69.89, a price we have not seen since September 2019.
Although the moving average convergence divergence (MACD) changed to bullish on December 21, 2019, it took some time for Litecoin’s price action to warm up, as the last bullish cross on January 29 led the 20% rally on Thursday.
Traders will also notice that Litecoin completed a mega cup with a handle and pulled it away from the handle by force.
Usually the shape of the cup and the handle serve as a starting point to continue the upward trend; The expected fracture size is often expected by measuring the distance from the top of the right side of the cup to the bottom of the cup.
In this case, cup and pen traders will quote the target from $ 90 to $ 100, but we all know that the cryptocurrency market is driven by an incredibly complex set of ever-changing factors.
Litecoin has now joined the ranks of altcoins that break out of the multi-year downward lines and 200-day moving average resistance ranges. For the next steps, traders need to turn around $ 63 and 200-DMA to get support before the price goes higher.
The price action of Litecoin / Bitcoin (LTC / BTC) also reflects the behavior of the LTC / USDT pair, although the cup-and-handle pattern is much smaller. The LTC / BTC pair broke through the 200-DMA and high-volume VPVR nodes and are now approaching long-term resistance at 0.007529 Satoshi.
As in the case of the LTC / USDT, the MACD chart has turned in a positive direction and the MACD has sharply crossed the signal line. The Relative Strength Index (RSI) is also floating in the overbought zone, indicating that the price may need to retreat to support 0.006736 SAT.
USDT traders, especially BTC, need to monitor the volume closely as buying volume for both pairs reached its highest level in almost 7 months today.
If the price could rise above 0.007529 (Saturday) and 0.008086 (Saturday), everything is about to set a higher high of 0.009088 (Saturday).
At the moment, Litecoin’s dominance rate compared to all other cryptocurrencies is 1.5%. Bitcoin’s dominance is now 65.9% and the total market value of the cryptocurrency is $ 258.4 billion dollars.
Apart from Litecoin, many other altcoins have shown remarkable gains. ETH is up 4.02% and finally breaks through the $ 175 resistance and now trades at $ 182.56. EOS also increased by 4.75%, while TRON (TRX) added 3.02%.