Litecoin (LTC) has been trading within a range of $60 to $74.9 recently. In the last couple of weeks, there has been a notable effort by the bulls to push the price above the Point of Control (POC) and sustain it at that level.
With favorable momentum and volume supporting the buyers, it appears that the upward movement could continue. Traders might consider taking profits at certain levels, while also keeping an eye out for the potential establishment of a long-term uptrend.
High Volume Profile and Fibonacci Convergence
Analysis of the Fixed Range Volume Profile indicates that the POC is situated at $65.5. Litecoin has surpassed this level several times since August, with the bulls displaying more dominance in the past month. The Money Flow Index (MFI) reflects bullish momentum and buying pressure, although it has not reached overbought conditions yet.
The high of the Fixed Range Volume Profile stands at $74.9, slightly above the 50% Fibonacci retracement level of $73.25. Breaking through these significant resistance levels may require some time due to their relevance in recent trading activity.
Given Litecoin’s downtrend since May, exceeding the $82.6 mark, which represents the 78.6% retracement level, is crucial for initiating a sustained long-term uptrend.
Anticipating a Potential Reversal in Litecoin’s Price
According to the 3-month liquidation heatmap, the $71.7-$72.8 range has served as a key liquidity area. Despite climbing to $73.07 in the last 24 hours, Litecoin retraced to $71 once more.
This liquidity zone extends to $75, although it is not as dense. Therefore, a breakthrough above $75 could signal a strong possibility of surpassing the $82 level, indicating bullish strength in the market.
Disclaimer: The views expressed in this article are personal opinions and should not be considered as financial, investment, or trading advice.