Litecoin [LTC] buyers can deploy this strategy to stay profitable


Disclaimer: The conclusions of the following analysis are the sole opinions of the author and should not be taken as investment advice.

Bitcoin’s growth over the past month has accelerated bullish recovery efforts in the crypto market. The fallout from this growth in the altcoin market was quite evident, especially with double-digit monthly gains.

As a result, Litecoin [LTC] the buyers found renewed pressure that encouraged its recovery past the 20 EMA (red) and 50 EMA (cyan).

A potential close above the immediate high could increase the chances of a prolonged upside in the time ahead. At press time, LTC was trading at $61.175.

LTC daily chart

Source: TradingView, LTC/USD

The altcoin’s efforts to alter the bearish trend finally came to fruition after reviving more than a third of its value in the past three weeks. With an ascending channel (white) in place, the bulls have established their footing beyond the constraints of the 20/50 EMA.

Since the reversal of the five-month trendline resistance at the support, the bulls have been working to break the resistance at the $61-$62 range. With the 20 EMA (red) still looking north, buy returns could position the alt to continue its patterned swing. In this case, potential targets would be in the $68 region near the upper trendline of the bullish channel.

Bulls need to find a close above its immediate resistance range to increase the chances of a sustained rally. Any break below the pattern would hint at reversal trends and could assert shorting signals.

Reasoning

Source: TradingView, LTC/USD

The Relative Strength Index (RSI) struggled to hold a position above the 60 mark while imagining a slight upside for the bulls. A sustained swing above the equilibrium zone would work in favor of the bulls.

However, the bullish divergence on the OBV could help the buyers to maintain the current pattern and continue the growth phase. Nevertheless, he had to break his resistance to confirm a strong buying advantage.

Additionally, the MACD lines saw a bullish edge while hovering above zero.

Conclusion

Given the bullish crossover of the 20/50 EMA alongside the bullish engulfing candlestick on the daily chart, buyers would be looking to continue the patterned move. The objectives would remain the same as those discussed. A reversal from the $68 region or the lower trendline of the pattern would hint at a sell signal.

Finally, LTC shares a 95% 30-day correlation with the king coin. Thus, a keen eye on the movement of Bitcoin would be imperative to make a profitable move.

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