- Litecoin has impressively recovered from $162 and brushed shoulders with $191
- A V-shaped pattern bolstering LTC upward reaches its limit but journey to $210 remains on course.
- The IOMAP model shows that Litecoin is sitting on strong support.
Litecoin price has gained roughly 18% of its value from August 19 support at $162. The recovery has been consistent and for nearly 5 days. LTC overcame various barriers, including $170, 50 Simple Moving Average at $178 and the $184 major resistance level. The uptrend surged above $190 earlier today. At the time of writing, Litecoin trades at $189.140 as the bulls remain determined to push the price higher.
Bullish Litecoin Underpinned By PayPal’s launch Of Crypto Services For UK Customers
Today, PayPal opened crypto services to its UK customers allowing them to sell and store Litecoin (LTC) and other major cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and Bitcoin Cash (BCH) through PayPal’s website and mobile app.
The announcement has helped bolster an already-recovering crypto market, with Litecoin rising above $190 on Monday morning. Bitcoin shattered $50,000 as well hit a three-month high earlier today.
The announcement follows the inline payments giant’s provision of crypto services to US customers launched earlier this year. PayPal plans to scale the roll-out to more of its 403 million international customers by the end of 2021.
Jose Fernandez da Ponte, Vice President and General Manager, Blockchain, Crypto and Digital Currencies at PayPal said:
“Our global reach, digital payments expertise, and knowledge of consumer and businesses, combined with rigorous security and compliance controls provides us the unique opportunity, and the responsibility, to help people in the UK to explore cryptocurrency. We are committed to continue working closely with regulators in the UK, and around the world, to offer our support—and meaningfully contribute to shaping the role digital currencies will play in the future of global finance and commerce.”
This announcement was welcomed by industry figures, as the influx of millions of new retail traders could help push the price of Litecoin up even higher.
Given the recent gains, and bolstered by such positive industry news, LTC remains on track to re-test the all-time high of $ $412.96 that it experienced in May 10, 2021.
Litecoin Price Faces Little Resistance Upwards
Following the sharp recovery to $184, LTC/USD was rejected by the upper boundary of the ascending parallel channel on August 20. This warranted a retreat as investors sought support the $178 level embraced by the 50 SMA. This allowed the bulls to regroup, and re-focused on towards the August 16 high at $188 (red line). This was achieved yesterday and exceeded earlier today.
This rally assumed was part of V-shaped pattern, bestowing control to the bulls. A V-shaped pattern is highly bullish and forms after a massive breakdown. As buyers return to the market, a sharp trend tends to come into the picture. A high trading volume ensures that the asset sustains the direction north.
However, the V-shaped pattern does not go on forever and stops when it is no longer sustainable. Even though it appears that Litecoin has exhausted its impact at $188, the rest of the journey to $210 appears on course.
LTC/USD Four-Hour Chart
To achieve this, LTC must hold within the confines of an ascending parallel channel to ensure that the uptrend is sustained.
Several bullish crypto signals accentuate this bullish outlook. For example, the Moving Average Convergence Divergence (MACD) indicator favours LTC’s bullish momentum. Its upward movement above the neutral line in the positive zone shows that buyers are in control of Litecoin.
Also not that the MACD just flashed a bearish signal on the 12-hour chart. This occurred when the MACD line crossed above the signal line.
Moreover, the current position of the Relative Strength Index (RSI) at 62.5 accentuates the bullish narrative. Furthermore, the Parabolic SAR reversed from negative to positive earlier today adding credence to the bullish bias.
This bullish bias is also supported by metrics from IntoTheBlock whose In/Out of the Money Around Price (IOMAP) model indicates that Litecoin is facing little resistance upwards. Its immediate resistance at $193 is within the $190 and $196 price range where approximately 47,000 addresses previously bought 320,000 LTC.
Litecoin IOMAP Chart
This compared to Litecoin’s robust downwards shows that the immediate support at $184 is within the $178 and $184 investor cluster where approximately 238,000 addresses purchased around 6.41 million LTC. As long as this support remains intact, bulls will keep their focus on lifting to $210. Therefore, with support in place, the slightest resistance path is upward.
On the flip side, if Litecoin slips to close the day below the rising channel to break under $184, it would trigger immense sell orders amid intensifying losses toward $$178. Several support areas will be in line to prevent losses from stretching further, including the 100 SMA at $172, and the 200 SMA at $154.
Where to Buy Litecoin
The top exchanges for trading in LTC currently are: eToro, FTX, Binance and Coinbase. You can find others listed on our crypto exchanges page.
Looking to buy or trade Litecoin now? Invest at eToro!
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Nancy Lubale
