Litecoin (LTC) exhibited an observable imbalance in buying and selling pressures across different levels of its order book, particularly at 1% and 5%. This imbalance occurred when buy orders exceeded sell orders, hinting at strong purchasing interest that triggered a mild bullish trend on the charts.
This trend reached its peak when the price of LTC hit around $130 on the charts. Liquidity dynamics also supported the optimistic outlook. Before this point, the altcoin faced minimal leveraging, which restricted sharp price movements.
Nevertheless, with growing bullish sentiment evident from clustered buying activities and a sweep of liquidity past $125, the price began to climb in response.
This liquidity sweep, where accumulated buy orders surpassed available sell orders, propelled the price even higher on the charts.
These factors collectively underscored how variations in buying and selling volumes at crucial price levels, combined with efficient handling of leverage and liquidity, could impact LTC’s trajectory.
Indeed, the current uptrend, backed by robust buying pressure and absorption of liquidity, may set the stage for a sustained bullish trend in Litecoin’s market.
Price Forecast
A deeper analysis of the 4-hour chart showed that LTC successfully broke through the upper boundary of a descending trend channel – a significant bearish pattern it had been following for the past few weeks.
This breakout propelled Litecoin’s price from a low of about $119 to a peak of approximately $126.54. The upward movement was further confirmed by the MACD indicator, displaying a notable divergence from the Signal line, shifting from negative to positive territory.
The histogram also expanded, indicating a rise in bullish momentum. Such a change in the MACD is often viewed as a bullish signal, reinforcing the idea of a sustainable uptrend.
If LTC manages to stay above the critical resistance level at $120, it could pave the way for further increases towards the $140 mark. This aligns with historical patterns in similar scenarios, where consolidating above key resistances frequently triggered additional price surges.
On the flip side, failing to maintain its position above $120 could result in LTC dropping back into the descending channel, nullifying the bullish outlook. This might lead to a retest of lower support levels, possibly dipping to around $115 if selling pressure intensifies.
Therefore, maintaining levels above $124 is vital for determining LTC’s short-term price direction. Only then can the cryptocurrency aim for $140 and beyond.