The price of Litecoin might astound the cryptocurrency market in the next days as a positive reaction may take place. Similar to how Bitcoin is compared to gold, Litecoin has been trading in a narrow range throughout September, hovering around the mid-$50 mark. On October 4, while also rallying impulsively, the bulls were able to surpass the previous weekly high.
At the time of writing, the Litecoin price is $54.55. The bulls have tagged the previous weekly high at $55, and are now targeting support from the 8- and 21-day simple moving averages. A “calm before the storm indication” might be seen in the weekly high’s breach. A price increase to the $60 and $66 levels is possible if the indicator is ineffective.
On shorter time scales, the Relative Strength Index is tilting more in favor of the bullish thesis. The volume profile indication is still only moderately active, suggesting that sellers may not be eager to lower the LTC price at the moment.
In the upcoming days, traders should keep an eye on the price of Litecoin. The bullish bias will ultimately be invalidated if the weekly low of $50.81 is breached. A further slide towards a 2020 support zone at $45 could result in a 16% decline if the invalidation happens.
