Litecoin holds key support – Mapping LTC’s road to $94 and beyond

The lack of demand meant that an explosive Litecoin rally remained unlikely. The $83 support is quite strong, and buyers can expect this level to hold soon. Litecoin [LTC] surged past the local resistance at $89.3, setting up the stage for the next slow move higher. The move would likely be slow since the volume indicator did not show heavy demand in the market. As AMBCrypto observed in the TradingView chart below, Litecoin closed a 1-day session above the 78.6% Fibonacci retracement level — a classic sign of bullish intent. This indicated that buyers were gaining control, making a breakout toward $96 more likely in the coming days. Litecoin surpasses a key Fibonacci retracement level, prepares for more gains Source: LTC/USDT on TradingView The trading volume was on the rise recently as LTC bounced from $83.2 to $91. The MACD was trending upward to indicate that bullish momentum was dominant. However, the CMF was an outlier. Despite firmer volume, CMF still sits beneath the +0.05 “strong-inflow” line, showing that the demand behind Litecoin’s latest leg higher is present but far from overpowering. Of course, this doesn’t cancel out the rally narrative. But if demand fades, a pullback toward $83 could follow. So long as Litecoin can remain above $82, the chance of a rally would be present. Short liquidations may fuel a climb to $94 Source: Coinglass According to Coinglass data, the 1-month Liquidation Heatmap highlighted the build-up of short liquidations around the recent local high at $93.5. Such dense clusters often act as liquidity magnets, meaning price could gravitate toward them in the days ahead. Source: Coinglass Over the past couple of days, a band of liquidity has built up around $85 and $80. At the same time, the $94 region transformed into a magnetic zone for the price. The inference was that a short-term dip to $85 was possible, before Litecoin bounces toward $94 and higher. A move to $80 was possible, but appeared unlikely since the $83 support has been stoutly defended over the past two weeks. Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion Share Share Tweet