Litecoin goes against the general market sentiment with a 24.5% and 57% rally in the higher timeframes. At the time of writing, LTC trades at $316 with 4.8% profits in the daily chart.
LTC on the offensive towards new highs in the daily chart. Source: LTCUSDT Tradingview
Anonymous trader Julio_LTC has set support for LTC at $280 with a price target set at $330. The operator is bullish as LTC climbed in the Relative Strength Index (RSI), a measure used to assess price momentum, in the lower timeframes. If the price action gets invalidated $218 could operate as critical support, as shown below.
LTC with support at $280 and a $330 price target. Source: Julio_LTC
LTC seems to be correlated with Ethereum’s performance rather than Bitcoin, as usual, according to the trader. Therefore, Litecoin’s rally could experience a cool-off or further appreciation if ETH leads the price action. If LTC hits its target, it could see stronger momentum towards a higher price. The trader added:
I dont believe we’ll see $7000+ this year but I do believe $LTC can go into the $3000-$5000 range. #LTC is a late game player.
Trader Crypto Tony is equally bullish after LTC broke the $289 resistance. The trader said:
Litecoin is going to run so hard it is going to mentally affect those left behind. Bags are packed and ready for launch. The BTC pair tells a story and I want us all to be a part of that story
Litecoin’s Fundamental Signal Potential Bullish Momentum
Data from Glassnode indicates that Litecoin has reached a 3-year high Realized Price at $129.65. Similarly, LTC’s Realized Market Capitalization stood at an all-time high with $8,7 billion.
📈 $LTC Realized Price just reached a 3-year high of $129.65
View metric:https://t.co/jC3fFKAnR2 pic.twitter.com/xjYBplqkjP
— glassnode alerts (@glassnodealerts) May 4, 2021
On-chain activity has been showing ambiguous signs with Litecoin’s network transaction volume at a 4-month low of 359,724 LTC. However, the number of Receiving Addresses reached a 1-month high at May 3rd, with 12,771 addresses.
📉 $LTC Transaction Volume (7d MA) just reached a 4-month low of 359,724.204 LTC
View metric:https://t.co/KXefSK4Tsl pic.twitter.com/FTMVDsRauP
— glassnode alerts (@glassnodealerts) May 4, 2021
Additional data provided by IntoTheBlock with their In/Out of the Money Around Price (IOMAP), an indicator to visualized clusters of Litecoin’s price distribution, records potential price support at $259 and $269 with over 5.96 million LTC bought by 103,000 addresses around these levels.
Source: InthoTheBlock
As the chart shows, if LTC rallies there could be major resistance at $314 to $322, $332, and $340. As mentioned, investors should keep a close eye on ETH’s performance for a potential breakout. At the moment, Ethereum’s rally seems to be cooling off but holds potential for another leg-up.
