Litecoin (LTC) is approaching a crucial technical threshold as it tests a resistance zone that has contained its price advances since 2021. Currently valued near $71, the cryptocurrency has r
Litecoin (LTC) is approaching a crucial technical threshold as it tests a resistance zone that has contained its price advances since 2021. Currently valued near $71, the cryptocurrency has rallied more than 30% from its recent lows around $50.
LTC’s recovery has lifted it above the 20-period exponential moving average (EMA) on the two-week chart, now situated around $59. Reclaiming this moving average marks a notable improvement for the medium-term trend after an extended period of underperformance.
Despite this progress, Litecoin briefly touched the key $80 resistance point before encountering renewed selling pressure, pushing its price back down to $71. The $80 zone is particularly significant, as it combines several important moving averages. The 50-period EMA is positioned at $71.56, with the 200-period EMA at $77.10 and the 100-period EMA at $79.31, all converging around the current price.
This dense clustering of moving averages creates a strong technical barrier. Participants who accumulated positions during previous declines may view the region as an opportunity to reduce exposure, while sellers could look to initiate new positions in anticipation of another rejection from this level.
Consequently, a brief move above $80 may not suffice to confirm a bullish reversal. Market analysts indicate that Litecoin would need to close decisively above $80 on a two-week chart to establish a new uptrend and overcome both the moving-average concentration and a multi-year descending resistance line.
Litecoin would need to record a decisive two-week close above $80, demonstrating that buyers can overcome both the moving-average cluster and the multi-year descending resistance line.
A confirmed breakout above $80 would put Litecoin on course for an initial target between $95 and $100. This zone represents both a psychological and technical barrier, which could prove challenging as it may attract increased selling activity. Should LTC close clearly above $100, the cryptocurrency could extend gains toward the $125-$135 resistance area identified across its long-term charts.
From the current price near $71, a move to $135 would translate to an increase of roughly 90%. Technical observers note that the $135 region has previously acted as significant resistance, with heightened volatility and profit-taking seen at those levels.
However, any optimistic projection relies on Litecoin achieving and sustaining a breakout above $80. The digital asset remains beneath this threshold and must navigate clustered selling zones before a bullish structure can be established.
The daily Relative Strength Index (RSI) has climbed to 79, indicating that Litecoin is in overbought territory. Elevated RSI readings often suggest that recent momentum could face resistance or even a near-term pullback.
Should the rejection of the $80 zone continue, the first notable downside target emerges at the 20-period EMA, now at $59. This level previously acted as a significant resistance and may serve as support if prices decline further.
Maintaining support at $59 would help protect the improving long-term trend structure, allowing Litecoin additional time to consolidate and potentially mount another attempt at the $80 resistance. Failure to hold $59, however, would likely bring the recent $50 low back into focus for traders.
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The post Litecoin trades at $71, eyes $135 if $80 resistance breaks appeared first on COINTURK NEWS.
