The 50 percent Fibonacci Retracement level has become a significant moment for Litecoin (LTC). A daily closing above $208 USD would help LTC to break through a stumbling block on its way to reclaiming its September peak.
If bullish momentum wanes in the coming week, bears may exploit the chinks in LTC’s armor and launch a selloff back to the $190 support level. LTC is presently trading at $210 USD at the time of writing, up 11.8 percent in the last 24 hours.
Between the Fibonacci Retracement Levels, the Visible Range Profile revealed a significant amount of selling pressure for Litecoin. LTC would need to target a daily close above $200 USD on robust trading volumes to overcome this supply zone with conviction.
Litecoin Price Chart – Source: TradingView
The foundations for LTC’s price development had already been built by a bullish crossover between the 20-SMA and the 50-SMA. Furthermore, the lack of significant resistance levels above $205 USD may cause LTC to easily bridge the gap between its September high of $232 USD and its present price.
A failed breakout effort, on the other hand, might lead to bears initiating a move below the 38.2 percent Fibonacci barrier. If the price falls below the 23.6 percent Fibonacci threshold, LTC’s bullish bias will be seriously harmed.
LTC’s greatest chance of a recovery in this situation would be a defensive resource at $190 USD. However, given the risk-on nature of the larger market, such an outcome seemed unlikely.
Now I’m debating The recovery of the Relative Strength Index above the half-line was unquestionably encouraging. This development bolstered LTC’s price movement, which was expected to produce more purchasing pressure in the medium run.
The Directional Movement Index’s (+DI) line crossed above the -DI line, indicating additional upward. However, with a poor ADX reading of 17, LTC could continue to trade sideways before putting together enough data for a breakout.
On the chart, LTC was approaching a make-or-break point. LTC could shift gears and rocket above $233 USD if it closes above the 50% Fibonacci level before the next wave of selling pressure hits the market. Bears, on the other hand, will be aggressive as long as LTC trades below $194 USD.