- LTC saw a spike to $140 overnight.
- Further upside rejected as of now.
- Litecoin prepares to retrace overnight gains.
Litecoin price analysis is bearish for the next 24 hours as any further upside got rejected around $140 earlier today after a 35 percent rally over the past days. Therefore, we expect LTC/USD to start retracing later today and move to test the $128 previous resistance as support next.
The cryptocurrency market trades with a substantial gain over the last 24 hours. Bitcoin is up by 12 percent, while Ethereum is up by around 8.5 percent. Meanwhile, Dogecoin (DOGE) is among the best performers, with a gain of 16.3 percent.
Litecoin price movement in the last 24 hours: Litecoin spikes to $140
LTC/USD traded in a range of $123.89 – $139.85, indicating strong volatility over the last 24 hours. Trading volume has increased by 61 percent and totals $1.77 billion. Meanwhile, the total market capitalization trades around $9.2 billion, resulting in a market rank of 13th place.
LTC/USD 4-hour chart: LTC set to retrace?
On the 4-hour chart, we can see the Litecoin price rejecting further upside after a very strong push to the $140 mark overnight, indicating an upcoming reversal.
Litecoin price action has traded with a strong bearish momentum over the last weeks after a swing high was set around $148. A clear descending resistance trendline was established over the first half of July, with a strong push lower seen from 12th to 20th of July. Overall, LTC/USD declined by more than 30 percent until support was found around $105.
What followed was a rapid move higher to the $120 previous support turned resistance first and the $128 mark next. Litecoin price also tested the descending resistance trendline on the 25th of July, potentially indicating a reversal to come.
However, LTC/USD did spike higher overnight once again and broke through the resistance trendline and the $128 mark. This price action development resulted in a test of the next resistance around $140. Therefore, LTC price action has become bullish once again, and we could see the first major sign of a much more serious medium-term reversal.
First, Litecoin has to retrace some of the gain seen overnight and retest the $128 mark as support. From there, if another higher low can be set, we could see Litecoin test the $148 previous swing high resistance later this week.
Litecoin Price Analysis: Conclusion
Litecoin price analysis indicates bearish momentum to come over the next 24 hours as bulls have advanced another 10 percent overnight. Therefore, we can assume that LTC/USD bullish price action momentum is exhausted, and the market will start to retrace some of the overnight gains.
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