Litecoin Bulls Breach February Yearly High, Heading for $100
LTC bulls prepare to take out the psychological $100 level.
- Litecoin set a new yearly high at $89.70 after breaching the February 2020 high.
- On-chain data shows low selling pressure from whales, indicating more room for upside growth.
- The William Alligator indicator shows a bullish trend emerging on higher time frames.
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Litecoin has surged to a new 2020 trading high after breaking past the February 2020 high with relative ease. The strong bullish momentum LTC experienced last week could easily spill over into this week as institutional investors turn to the Bitcoin fork as an alternative investment.
Litecoin Bulls Take Aim at $100
The weekly close above February high suggests that a potential bullish explosion towards the $100 resistance zone is highly probable.
Technical indicators on the higher time frames also show large room for upside movement in the following days, with the ultimate weekly bullish target sitting near the $140 level.
Looking at the William’s alligator indicator, the near-term bullish outlook remains in place while price trades above the $80 support level, which coincides with the 5-day moving average (green).
A failure to hold the $80 support level could see LTC performing a near-term price correction towards the $75 to $70 range for support. Dip-buyers will likely be lurking around the mentioned support region in expectation of renewed highs over the medium to long-term.
On-chain data analysis provided by Santiment shows no major selling pressure from whales at the moment. Additionally, daily active addresses are diminishing as prices continue to surge.
This metric suggests that traders continue to hold on to Litecoin during this price expansion period.
This indicator should be monitored closely if LTC approaches the $90 or $100 levels, as a spike in daily active addresses may indicate profit-taking for larger LTC holders.
Data analysis from Santiment also shows that Litecoin addresses holding 1,000,000 to 10,000,000 coins have been steadily increasing their balances since Oct. 27.
This metric highlights that whales have been adding to their balances, coinciding with the recent bullish rally above the $65 resistance zone.
Addresses with 10,000-100,000 coins have been selling some of their holdings, indicating short-term speculators taking profit towards the $84.50 yearly resistance. Conversely, addresses holding 100,000-1,000,000 coins have maintained their balances, suggesting they are neither selling nor buying more coins.
With the positive technical and on-chain backdrop, LTC could be well-placed to break into a much-higher trading range this week if bulls can overcome the psychological $100 resistance level.