As the market fell last week (and continues to do so), Litecoin was one of the few currencies to increase value.
CoinGecko reports that the price of a single Litecoin is at $63.69 at the moment. The token is up 8% in the past 24 hours, providing relief to traders and investors. Litecoin (LTC) thus created a surprise by outpacing the other cryptos in the top 20.
The alternative cryptocurrency that has been around for quite some time seems to be gaining popularity among investors.
Only 35% of LTC holders are profitable, per CoinMarketCap. The percentage of holders who would benefit monetarily from a sale at the present time is thus reduced.
While this rebound is encouraging, the current state of the market following the contagion that has FTX means that LTC may not be able to avoid further market declines despite the rise.
The outlook for Litecoin looks favorable
As it stands, the market environment is very bull-unfriendly. Despite the market decline, a few cryptocurrencies managed to make it into the top 20.
The Relative Strength Index (RSI) for LTC is rapidly approaching the oversold zone, indicating a strong reversal from an uptrend to a negative trend.
At its current level of $63.69, the price is still above the 38.20% Fibonacci retracement zone.
Over a 4-hour timeframe, however, the RSI values are rising, indicating increasing bullish momentum.
The current support level is $61.81, which is quite a strong support level given the current market conditions.
Currently, the market structure resembles a bullish descending triangle, with a likely breakout around the $64.15 price level.
In addition to supporting a likely positive breakout, the expanding Bollinger Band indicates volatility in the weeks ahead.
As the bulls retest the $64.15 price resistance in the coming weeks, they should be watching the market environment.
Long-term LTC investors appear to be selling, while long LTC positions exceed short positions, according to CoinGlass.
With massive short-term selloffs occurring in LTC over the past few days, this shift in momentum stands in stark contrast to current market conditions.
What to expect with LTC
LTC appears to be moving against the tide of the market, diminishing or losing its link to BTC and ETH. As the scenario for Litecoin improves, bulls should be aware of the current unfavorable market conditions.
Defending the support at $61.31 is enough to maintain the bullish momentum for LTC if it cannot clear the resistance at $64.15.
Crypto total market cap at $787 billion on the weekend chart | Featured image from ITNext, Chart: TradingView.com