Price Analysis as Litecoin (LTC) Clears First Resistance

Litecoin (LTC) has managed to move significantly higher in today’s trading.

The coin is currently trading around the $40 handle after clearing the first horizontal resistance  – the middle red line (Graph 1).

Litecoin announced that the Litecoin’s Lightning network has now surpassed 100 Active Nodes for the first time.

The statement adds that “Litecoin’s Layer 1 blockchain remains free from congestion thanks to its 4x quicker block time, allowing it to process roughly 4x as many transactions than its big brother Bitcoin over the same time period”.

Looking at the daily chart below, the price has cleared the first level of resistance. It is currently approaching the 100 DMA, which represents the next important resistance.

The confluence of resistance levels sits around the $47 mark. It consists of the horizontal trend line (the upper red line), and the descending trend line (the blue line). Currently, this zone represents the major resistance level for the LTC bulls.

Graph 1. Litecoin (LTCUSD) price analysis

Three weeks ago, Newconomy published an analysis on LTC’s price analysis where the conclusion was that “we expect the coin to move lower to the “magnet” level between $16 – $18. This zone is looked at by both bulls and bears as they look to maximize the given opportunity. Bears, on the one side, are looking to exit their profit positions at or near this level, while the bulls see this as a unique opportunity to get on the long side at a relatively low price”.

Thus, nothing has changed on the downside for the LTC. The target for the bears is still the aforementioned level.