Litecoin (LTC) has made a surprise breakaway even as the greater crypto market struggles to make gains, pushing up fast since Nov. 22 and rising over 27% in the past 48 hours and currently sitting at $78. The question is, does it have more bullish juice left or will the latest pump be followed by a sharp correction?
This depends on both technical and fundamental factors. On the technical side, LTC has broken out of its sideways range from last week, ending up well above a key resistance and support level at $70.
On the fundamentals side, there are obviously macroeconomic factors driving the wider crypto market at the moment, including the overall bearish market trend and the FTX fallout.
Let’s take a look at some key supports and resistance areas for Litecoin to get an idea of what’s possible in the short and medium term.
Litecoin Price Prediction and Technical Analysis
Litecoin is currently at a 12% gain in the past 24 hours, reaching as high as 27% at one point, while Bitcoin is only up 1.5%.
Although we have broken a resistance level at around $70, LTC failed to break out past the $80 mark, indicating that a more significant push may be needed to reach the $100 mark. If we close the day above $79 or so, this could be a bullish sign for the cryptocurrency.
The $100 area was key support multiple times since January prior to a break below this level in May. If it does manage to break above this level, LTC could easily hit $143, with the next target after that around $300.
$143 also has historic significance. In February of this year, the $143 level acted as support, as it also did in Sept. and Dec. 2021, while way back in June 2019, this level acted as resistance.
Is it Time to Exit Litecoin?
If LTC’s price closes the day around where it is now, indicators such as a downward RSI trend suggest that it will experience a bearish divergence, which may indicate a reversal to the downside.
As mentioned, the first support level is around $73.76. If this support fails to hold, there are no clear supports until $40. LTC has been ranging between $40 and $74 since May, so it is possible that the price may continue to range between these levels, making it difficult for bulls to take control of the market.
Ultimately, LTC investors will want to assess their risk tolerance and decide whether it is time to exit Litecoin. There is no guarantee that LTC will break the $100 mark by 2023 or even surpass the $80 resistance level in the short term.
With the greater crypto market still roiling from the FTX disaster and the possible bankruptcy of other key market players, it may be a good time to explore other projects that haven’t yet pumped or consider moving into cash until the market settles.
Other Cryptos Offering Shorter Term Gains
A good way to get into a coin before its price pumps is to buy into presales of projects with good fundamentals. D2T, TARO, and RIA are three projects that have already raised a significant amount of capital in their presales and are poised for future growth.
Dash 2 Trade (D2T)
Dash 2 Trade is a trading intelligence platform for investors set to launch in Q2 2023 that will provide real-time analytics and social trading data. D2T has raised $6.9 million, with a listing on BitMart Exchange and LBANK Exchange planned for early next year.
RobotEra is an Ethereum-based sandbox Metaverse due to launch its alpha version in Q1 2023. Players will be able to build and play as robots and participate in creating a virtual world that includes NFT-based land, buildings, and other items. TARO is currently trading at 0.02 USDT and this price is set to increase to 0.025 USDT in the next phase of its presale.
Calvaria is a blockchain-based card-trading game enabling players to do battle with their NFT cards and earn rewards. RIA will be used within the game for purchasing in-game items and for staking. Its token presale has raised $1.9 million and is currently in its fourth stage, during which 40 RIA are available for 1 USDT.