Litecoin price surprised the market as the bulls produced a jaw-dropping countertrend rally. As the price ascends, traders are forced to question possible resistance levels, among other factors within the technicals. Key levels have been defined to assess Litecoin’s underlying strength.
Litecoin price takes off
Litecoin price has become one of this month’s Crypto outperformers as the bulls have pulled off a remarkable uptrend move. As of November 25, the Litecoin price has surged by 75%. Now, a profit-taking consolidation ensues and the technicals show subtle signs hinting that the bulls have higher targets to hit.
Litecoin price currently auctions at $77.08. The newfound monthly high at $83.19 breached overbought conditions on the Relative Strength Index (RSI), which is a signal that suggests the uptrend move is genuinely impulsive. Traders in disbelief of Litecoin’s potential to rally will have to remain sidelined until the RSI comes back into consolidation territory under the 65% level. Cryptocurrencies have been known to print several divergences in the overbought territory before a sharp correction occurs. The first one displayed at the current time may only be the warning sign of the trend’s waning momentum.
The next bullish targets lie at $90 and potentially the $100 congestion level. The bullish outlook will be void if the bears manage to tag the previous support zone at $64. In doing so, the bears could induce a seller’s frenzy targeting the monthly lows at $49.57. The invalidation scenario would result in a 40% decrease from Litecoin’s current market value.