Litecoin had a massive surge in the last 24 hours. It shot up after a slight decline early on Thursday. It prints one of its longest candles over the previous two weeks.
The coin opened the day at $115 but saw slight declines. It rebounded and continued upward, it broke its seven-day high $130 and peaked at $134. The asset prints a massive 12% candle at its current, raking up discussion about its next price destination.
Litecoin received a fresh boost from the massive bullish sentiment across the market. The FOMC meeting went as market analysts predicted. They stated that interest rates would remain untouched and that the meeting would not impact the crypto market. The market’s performance after the meeting proved them right.
Nonetheless, the market has since seen massive bullish sentiment spread across several cryptocurrencies. Litecoin was not exempt from the positive state.
The altcoin attained its recent increase based on a fresh regulatory nod. The United States Security and Exchange Commission (SEC) acknowledged Canary Capital’s application for Litecoin ETF. Although the odds of approval hang in the balance, the acknowledgment brings it a step closer to the goal.
The coin will receive significant exposure to U.S exchanges if the regulatory body approves. Canary Capital may be the first to offer Litecoin ETF.
The most recent uptrend sees investors split between believing in further increases or anticipating correction.
LTC Bullish Convergence
The coin has experienced significant price increases for the second consecutive day. The sudden boost has raised concerns about a possible price recline. Nonetheless, the price actions at the time of writing mimic those of the previous day.
LTC opened trading at $109 on Wednesday but surged up afterward. It tested the $120 resistance but retraced after hitting the mark. It closed the day at $115, with gains exceeding 5%.
The current-day candles show a wick sticking out of the candle as the buying pressure significantly declines. Selling pressure is gradually rising. However, the bulls keep prices above the $129. Based on previous performance, the asset may continue its uptrend as it did following Wednesday’s performance.
Indicators like the moving average convergence divergence (MACD) and the relative strength index support this claim. The MACD displays a complete bullish convergence and an ongoing divergence, which herald the start of a significant price uptick.
RSI was at 46 on Tuesday as selling pressure neared its peak. However, it is now at 60 in response to the notable rise in buying pressure. This reading is the same on the accumulation and distribution charts.
Litecoin Eyes $140
Previous price movements reveal that the coin may look to surge. Since peaking at $134, its next price level may be $140. Currently trading above the 23% fib level, due to notable demand concentration around it, it may receive a further boost from this price mark.
Nonetheless, the asset is not out of the danger zone yet. A closer look at the one-day chart shows that two scenarios may play out after such a massive increase: price consolidation or retracement. A price consolidation may cause it to become rangebound for a short period.
However, a change in price trajectory may cause the asset to lose the 23% fib level and slip as low as the 38% fib level at $117.
