The Litecoin (LTC) price has increased since Oct. 19, reaching a high of $75.18 on Thursday.
The price trades in the middle of a long-term range for nearly a year. Will LTC reach the top of the range?
Litecoin Trades in the Middle of Range
The weekly time frame technical analysis shows that the Litecoin price has traded in a range between $60 and $100 since November 2022.
While the price briefly moved above the range high (red circle) in July 2023, it fell below it almost immediately afterward. The ensuing decrease led to a low of $56 the next month.
Despite the drop, the altcoin bounced and reclaimed the $60 horizontal support area, creating a long lower wick (green icon).
The LTC price has increased since and currently trades close to the middle of this range.
Read more: 7 Best Litecoin (LTC) Wallets for 2023
With the Relative Strength Index (RSI) as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset.
Bulls have an advantage if the RSI reading is above 50 and the trend is upward, but if the reading is below 50, the opposite is true.
The weekly RSI is right at the 50 line, indicating an undetermined trend.
On Wednesday, the Litecoin account on X (formerly Twitter) announced that Binance had posted its proof-of-reserves report, which is evidence that the exchange has enough funds to cover all its user’s assets.
In the report, Litecoin reserves are pegged 101.43%, meaning there are more reserves than users funds. Such reserves serve as a safeguard in case a significant number of users move to withdraw their funds.
Read more: How To Buy Litecoin (LTC) in 4 Easy Steps
The Litecoin team stated that:
“Reserves within the crypto house, function a safeguard, akin to the monetary reserves held by conventional banks. Sustaining reserves at or above 100% is an important sign they’re dedicated to the safety and integrity of consumer belongings. The slight excess in LTC, shows Binance’s dedication to making sure that buyer belongings are absolutely backed, no matter market volatility.”
LTC Price Prediction: Can $100 Be Reached?
The daily time frame analysis gives a bullish outlook for the LTC price. This is because of both the price action and the RSI.
The price action shows that LTC broke out from a descending resistance trend line on Sept. 29, indicating that the correction had ended. After validating the trend line as support, LTC accelerated its rate of increase.
On Nov. 6, LTC broke out from the $70 resistance area, which had been in place since Aug.17.
The daily RSI supports this increase since the indicator is above 50 and increasing, both signs of a bullish trend.
Cryptocurrency traders on X (formerly Twitter) are bullish.
SantoXBT tweeted that the price will increase to $80 soon due to the aforementioned breakout. George1Trader did not give a target, but stated that the LTC chart looks “ready to melt”.
If the LTC price continues to increase, the next resistance will be at $93, 25% above the current price.
Despite this bullish LTC price prediction, a close below the $70 horizontal area will invalidate the breakout. A 20% drop to the $60 support will be expected in that case.
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Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
Read More: How Long Will Litecoin (LTC) Price Increase Continue?