Litecoin has seen some incredibly bullish price action over the past week, with the cryptocurrency rallying from seven-day lows of $53 to highs of $70. Although LTC faced some resistance at this level, its market structure is clearly growing increasingly bullish.
After setting these fresh 2020 highs of $70 yesterday, the cryptocurrency has only retraced slightly, which comes as the aggregated crypto markets are facing a steep ongoing selloff.
In the near-term, it does appear that Litecoin is on the cusp of closing above a key technical level that could catalyze its next major bull movement, which means the coming few days could elucidate its mid-term trend.
Litecoin Hovers Just Below Year-to-Date Highs as Crypto Markets Face Steep Selloff
Currently, LTC is one of the only major altcoins that is trading up over a 24-hour period, signaling that it currently has greater technical strength than many alternative digital assets.
In the near-term, it does appear that the cryptocurrency could be on the cusp of going on a short-term parabolic rally, as it is currently attempting to confirm a bullish Ichimoku and a daily close above its 200-day moving average.
TraderSmokey – a well-respected crypto trader on Twitter – spoke about the importance of these aforementioned technical formations in a recent tweet, while referencing a chart showing that this confluence of bullish technical factors has historically allowed LTC to incur parabolic rallies.
“Litecoin Daily: Criteria: Bullish Ichimoku + Daily Close above 200MA,” he explained while referencing the chart seen below.
Criteria: Bullish Ichimoku + Daily Close above 200MA pic.twitter.com/c9zhlUB0td
— TraderSmokey (@SmokeyXBT) January 31, 2020
LTC is a “Screaming Buy” If It Holds Above This Key Level
Because Litecoin’s bulls do appear to be particularly strong at the moment, it is possible that they will catalyze enough near-term buying pressure to propel it past its year-to-date highs of $70.
It is also important to note that LTC could soon close above 0.0069 BTC, as today’s Bitcoin drop led LTC’s BTC trading pair to rocket up to 0.0072.
Ledger Status – another prominent technical analyst – noted in a tweet from yesterday that a sustained close above 0.0069 BTC would make Litecoin a “screaming buy.”
“Litecoin is an absolutely screaming buy above .0069 daily close.”
— Ledger Status (@ledgerstatus) January 30, 2020
If the cryptocurrency is able to stabilize around its current price levels or even inch higher today, it could soon see a massive upwards swing that allows its uptrend to turn parabolic.
Featured image from Shutterstock.