Litecoin bulls outperform themselves: How far can this go?

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  • Litecoin trading volume rise above $1.6 billion.
  • Sellers gain traction as Litecoin drops 5% on the day to test $48.00 support.

Litecoin has recently become a top performer among the top ten cryptocurrencies. It has outperformed even big sibling, Bitcoin. The crypto broke above the psychological hurdle at $50 during the Asian trading session on Thursday. The bulls have literally performed better than they expected and now the question is, how far can this trend go?

In the last 24-hours, the trading volume for the world’s fifth largest cryptocurrency stands at $1.6 billion. However, Litecoin’s market cap has declined from yesterday’s highs at $3.1 billion to the current $2.9 billion. This trend has led to reversal with LTC/USD dropping to $48.00 from highs marginally above $52.00 representing a 5% correction on the day.

However, bullish momentum is growing at press time and Litecoin is currently trading at $49.03. The price is between the Simple Moving Average (SMA) support and resistance where the 50-day SMA is limiting gains at $49.38 while the 100-day SMA offering support currently at $47.45.

According to the 1-hour Relative Strength Index (RSI), LTC buyers must continue to defend the support at $48.00; slightly above the 61.8% Fibonacci retracement level to avoid further breakdown towards $40.00. The Moving Average Convergence Divergence on the same chart signal is almost crossing into the negative region to show that the bears are gaining traction against the bulls.

LTC/USD 1-hour chart

 

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