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Litecoin, like the majority of its peers, saw its value rise once Bitcoin surpassed the $50,000 mark. On the 4-hour timescale, the alt, which has historically had a strong correlation with the king coin, lined up seven consecutive green candles. This was last seen in late May, when Litecoin had recovered from a near four-month low.
A resistance zone, on the other hand, appeared to have the ability to precipitate the next market fall. To maintain its trajectory, LTC must close above this zone. LTC was trading at $182.6 at the time of writing, up 4% in the previous 24 hours.
Litecoin 1-hour Chart
On the hourly chart, there was some selling pressure in the market as LTC neared the critical resistance zone of $185-$190. Throughout mid-August, this resistance was active, frequently triggering a sell-off. As a result, there was a considerable risk of another drawdown, which might lead to significant losses in the future. In such a circumstance, the focus would turn to the $176-$178 support zone.
To overcome the bearish outlook, LTC would need to close above $190 on strong volume. This would also reduce the possibility of a false breakout. Levels like $200 and $210 would then be available.
LTC’s indications were positive, but they were indicating a decline in bullish strength. This was seen on the RSI, which threatened to enter a downtrend if it breached its lower ascending trendline.
Buyers have gradually ran out of steam, according to the Squeeze Momentum Indicator, as the index has generated lower peaks. Finally, the hourly MACD reported a bearish crossover as sellers attempted to gain control of the market in the short term.
LTC’s uptrend can be expected to be limited between the strong resistance zone of $185-$190. The indicators suggested that sellers have been laying the foundations for an upcoming retracement, in which case the focus would shift to $176-$178.
This is why buyers must not take a breather over the coming sessions. A close above $192 on strong volumes would negate the chances of a bearish outcome.