Key Takeaways:
- Litecoin was down 70% from its all-time high.
- Technicals point at a bullish continuation.
- Santiment detected whale activity, and large-amount Litecoin transactions.
YEREVAN (CoinChapter.com) – The Litecoin (LTC) price stood at $121 in Wednesday’s European session after the recent rebound in LTC/USD exchange rate resulted in a week-long sideways consolidation.
Litecoin mimicked Bitcoin’s undecisive price action while heading 70% lower from its all-time high of $413, established in May last year. However, LTC hinted at an upcoming surge.
Litecoin (LTC) bullish daily chart
In detail, the LTC broke out of the Falling Wedge formation on Mar. 22, which backs the bullish claim. The setup entails two trendlines with a negative slope. They enclose the price action, lowering the swing as the pattern progresses. Despite the negative slope, Falling Wedge is a bullish reversal pattern.
As mentioned, LTC broke the formation’s resistance, which was relevant since Sep. 2021, but the token’s reaction was relatively muted.
However, LRC/USDT price action arrived at a significant support line at $120, which could serve as a rebound level.
Additionally, the Litecoin token flashed a bullish relative strength index (RSI) divergence. In detail, the RSI is a momentum indicator that measures the magnitude of recent price changes to analyze overbought (>70) or oversold (<30) conditions.
Also read: Litecoin launches its Mimblewimble update, but a death cross looms over LTC.
Meanwhile, the RSI divergence simply indicates a prospective trend reversal. The price action printed lower highs, while the RSI registered higher highs, hinting at an uptrend.
Litecoin Weekly chart
The weekly chart confirmed the bullish outlook only partially. Zooming out underscored the importance of the $120 support for future analysis, as failing to hold it could throw LTC back to $95. Thus, the upcoming week could clarify the expectations.
However, this week, the MACD indicator (histogram at the bottom of the chart) registered a green crossover, strengthening the bullish claim.
Also read: Good news! Bitcoin, S&P 500 correlation falls amid recession risks.
Moreover, a recovery in investor confidence might be underway, as analytical platform Santiment registered a heightened whale activity.
Litecoin may not be on many traders’ radars right now, but it quietly just saw the largest amount of daily LTC whale transactions exceeding $100k+ (3,458 transactions) in 2022.
mentioned the platform.
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Santiment also added that heightened whale transactions typically indicate a “mid-term price direction shift.”
