Key takeaways
- LTC has defended the $75 low, forming a double bottom in the process.
- The coin could rally towards the next liquidity level at $95 soon.
LTC defends the $75 low, surges to $85
Litecoin’s LTC is recovering nicely from its recent slump and looks set to rally higher in the near term. The cryptocurrency is up 1% in the last 24 hours and now trades above $85 per coin.
The positive performance comes amid a strong recovery from the broader cryptocurrency market. The ceasefire deal between Iran and Israel saw over $200 billion added to the crypto market, with Bitcoin now trading above $107k.
Litecoin’s medium-term rally could also be boosted by the possible approval of a Litecoin ETF. Several firms have already filed for spot Litecoin ETFs with the SEC, and any news of an approval could serve as a big boost for LTC.
LTC targets $95 amid bullish technicals
The LTC/USD 4-hour chart is bullish but inefficient. The inefficiency means that LTC could likely retest a lower liquidity level before rallying higher. LTC could retest the $82 level over the next few hours before it resumes its upward movement.
The MACD lines currently read 0.72 after crossing into the positive zone earlier this week. The RSI of 58 also shows that buyers are regaining control of the market. If the bullish trend grows stronger, LTC could rally towards the $95 mark.
However, Litecoin will need backing from the broader cryptocurrency market if it intends to surpass the $107 transactional liquidity level.
LTC’s rally depends on the fundamentals of the broader market. If bears regain control on the back of another conflict in the Middle East, then LTC could retest the $75 low or even drop to the next support level at $66.
