After two days of doldrums and mundane trading, Bitcoin price is breaking out, hinting at a sudden crypto recovery to end the week. The largest cryptocurrency blasted above $62,000 during US trading hours on Thursday following a downturn to $61,000 support. Based on Litecoin price analysis, the path of least resistance is gradually changing the trend upwards.

The ongoing consolidation reflected by the Bollinger bands indicator could culminate in a larger breakout aiming for areas beyond $100.

Litecoin hovered at $81, increasing its value by a mere 0.1% in 24 hours, CoinGecko data revealed. A noticeable 6% decline in the trading volume points to the lack of interest among traders. LTC boasts $6.1 billion of market cap, ranking #19 among all cryptos.

Litecoin Price Analysis: Stuck Between Rock And Hard Place

Fundamental data provided by IntoTheBlock shows an unbiased Litecoin. In other words, sideways trading is taking precedence, leaving LTC stuck between robust resistance and support areas.

Based on the IOMAP model, clusters of resistance zones may invalidate a potential breakout to $100. The largest hurdle runs between $86.5 and $89.12, where nearly 500,000 addresses purchased 4.5 million LTC.

On the downside, Litecoin sits on top of solid support areas with the immediate one taking the position between $79.4 and $81.62. Approximately 485,000 addresses bought 5.24 million LTC in this range.

Litecoin IOMAP chart | IntoTheBlock

A break on either side of the highlighted support and resistance would determine if the decline continues or a trend reversal occurs.

Meanwhile, sitting above the Bollinger bands middle boundary affirms the sideways trading structure. However, the overall narrowing of this indicator hints at a potential breakout either up or down. Often the tighter the constriction the larger will be the potential breakout.

Since the Relative Strength Index (RSI) has moved above the midline following a dip into the oversold region at the beginning of this month, a bullish outcome is highly likely.

Litecoin price chart | Tradingview

The RSI must up uphold the uptrend toward the overbought region to keep the bullish thesis in LTC price validated. In the short term, a daily close above $82 will go a long way to reinforce the bullish grip, increasing the chances of testing the huge fundamental barrier around $90.

Traders cannot rule out a potential sweep through lower levels at $76 and $72. Both of these levels were important to Litecoin in April and early May.

The post Litecoin Price Analysis: Is LTC Breaking Out 100 Today? appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am