The Litecoin price remains very much elevated at the time of writing on Monday. Market bulls are maintaining the recent renewed momentum that had come back into play just last week. LTC/USD is now running at three consecutive weeks in the green. This coming after a rebound was staged on week commencing of 10th December, where a reversal doji had formed. This clearly solidifies the change in trend after a year of bears being firmly in the driving seat.
Fast Highway to the North
LTC/USD from the 16th December, has formed an ascending channel formation. This has been supporting the price in its fast move to the upside. As a result, Litecoin has gained well over 40% from moving within this channel – initially being as low as the $25 territory to rally up to recent highs at $37. That’s the highest level obtained since the back-end of November, which at the time was still very much within the midst of the market sell-off.
Key to Further Upside
The upper trend line of the above detailed ascending channel has temporarily slowed the bulls down. Resistance is tracking around $37.50 heading into the $38 mark, which has been demonstrated Monday. In order for there to be another wave of buying pressure, the bulls must breakdown supply, observed from $35-38. This is an area that saw active sellers preventing the price from moving back above, between November to early December.
Should upside momentum pick up intensity, an extension through the channel and above the detailed supply area would likely be seen. The next target area of interest would then be the big $50 price region. LTC/USD has not traded here since the 14th November, during the intense selling pressure of that month. The price had been range-trading through much of October to November, swinging between $50-$55. To see a return initially here for the bulls would make most sense.