Litecoin was the one to catch us by a surprise since the last two days. Amid an inbound confluence of indicators expected to probably resist its price from climbing, Litecoin gained momentum upwards.
The top cryptocurrency has now established support above a critical level at $44.5 and is now showing signs of a possible climb towards $50 in the near term.
Buyers have now taken control as market sentiment turns bullish. Litecoin gained 3% within the last 24 hours and has also recorded slightly higher figures in market capitalization and exchange volume. Both values now stand at $2.91 and $2.86 billion respectively.
Although sellers are launching a series of attacks to gain control, the same struggle remains invalid so long the LTC/USD pair stays above $44.5. Below this level, the bears may be able to record lower prices at $42 again.
However, as the bulls prolong their control of the market, it is becoming more likely that we may see a $50 litecoin shortly. Beyond this level, the coin may be heading towards $55.
LTC/USD 4-Hour Chart
In the 4-hour timeframe, Litecoin surpassed a confluence of bearish indicators at the 0.5 Fibonacci retracement level to establish support above the area. The bulls are now conveniently riding towards $50.
Although sellers have taken a couple of turns to divert the market momentum towards a bearish sentiment, prices remain considerably above critical support at $43.
The falling resistance trendline is now acting as the initial point of support for the LTC/USD trading pair. Below this level, prices may fall back to lower highs at $42.
However, the bulls have an advantage as a result of a rising support trendline which strongly suggests that prices will bounce upwards at the $44.0 level.
If this bounce is eventually achieved, the early level of major resistance lies at the $46.5 mark. Beyond this, additional resistance exists at $47 (1.4 Fibonacci extension level) and finally $50.