Litecoin is very easy and simple to understand. However, some compare it to the forks of Bitcoin, which might be technically true. LTC was created as an alternative to BTC with a lesser token value and a different hash rate. Apart from these two fundamental differences, both are essentially the same thing. While BTC is the market leader, Litecoin enjoys buyer attention as one can acquire the entire token by spending 500 times lesser value. The application of lower token value has a lesser transaction cost than BTC, with similar privacy and cryptography features.
LTC’s movement towards recent highs has been a derivative of buyers aligning towards this network and its actual usage in crypto merchant payments, of which LTC has the largest network. The market capitalization of Litecoin has jumped significantly while other tokens are lying flat with a current value of $5.63 billion, having 84% circulation liquidity. The value ranks Litcoin above the likes of Shiba Inu and Tron at the 13th spot. The outlook of this token would greatly improve in the coming days as new resistance levels are being breached with its gradual and slow-up move.
Litecoin Eyes Breakout Amid $78 Resistance Test
LTC’s breakout from the sideways movement is a huge opportunity for the further uptrend to reclaim some of its previous gains. Litecoin has been moving in a narrow territory for the last couple of months, and this gain is a welcome sign. The resistance near $72 is a positive aspect of this token, followed by the consolidation near $78. The outlook could turn green with a consistent breakout.
Litecoin is currently facing a consolidation at $78 on the upper level and the previous resistance of $72 on the lower level. This price action confirms the prior resistance level of $72 has lost ground here and rather acts as an immediate support level. Perhaps LTC would be the only few cryptocurrencies that are trading well above their 100 and 200-day exponential moving averages.
RSI has returned to its overbought stance, as witnessed before in the first week of November. Despite succumbing back to the $50 level, Litecoin buyers considered the dip as a buying opportunity. The fact that such a level was considered a positive element is enough to indicate the importance and growing belief of buyers in the LTC token.
Since the token has been consolidated for more than a week, the movement of the MACD indicator would progress towards a bearish crossover if the LTC price fails to move above the $78 mark. Weekly charts for Litecoin showcase a positive stance, with values up until May 2022 expected to be retraced, and another 28% gain needed to engulf the largest bearish movement of 2022, as per the LTC price prediction. Despite reaching such highs, LTC would still be 75% bearish compared to its all-time high of $387.
