Litecoin recently managed to cross the $78 level for the first time in five months, invigorating market participants with a renewed thirst for gains. And while the drop below the $70 mark that followed might have had some investors concerned, Litecoin appeared to be in for some bullish price action, at press time. According to CoinMarketCap, Litecoin had a market capitalization of nearly $5.1 billion and recorded a 4.57% price rise over the last 24-hours.
Litecoin 1-day chart
Litecoin had seen a few corrective moves on its rise to $84 earlier this month, and with the most recent one seeming to have come to an end, LTC could be in for a pump.
The latest price candle on the daily chart appeared to have crossed above the resistance line at $73.8, which has historically acted as a strong support to Litecoin. At the time of writing, LTC was testing the resistance at the 61.8% Fibonacci retracement line at $78.8. While the MACD appeared to be in a bearish crossover, the faster-moving average seemed to be making an upward flick, something that could indicate a bullish crossover to come.
Further, the 50 and 200-day moving averages maintained their golden cross, a development that is usually a strong indicator of price appreciation over a medium to long-term time period. It is likely that LTC will appreciate to $91 by early to mid-March.
Data from CoinMetrics showed that Litecoin’s correlation with Bitcoin has been rising steadily since mid-January, and it appeared to be moving at the same level seen in June last year. With a high positive correlation of around 0.81 at the time of writing and considering BTC‘s expected appreciation in the medium-term, Litecoin is likely to make some bearish movements in the coming weeks.
With the MACD potentially preparing itself for a bullish crossover and the moving averages maintaining their golden cross, Litecoin will likely move up in value over the next couple of weeks.
Further, since bullish movements are expected from Bitcoin in the medium to long-term, LTC‘s high positive correlation also predicts price appreciation and a push above the 61.8% Fibonacci line could facilitate a pump to the $90 level by mid-March.