- Litecoin shows early recovery signs with a 0.69% gain to $87.65 after dipping to the $85 zone.
- Bullish divergence appears on the RSI while MACD signals weakening selling pressure.
- Price faces strong resistance between $91.18 and $94.22, aligned with the 20-SMA and 200-SMA.
- A confirmed breakout above $91.50 could shift momentum, while failure risks a drop to $84–$82.
Litecoin (LTC) is showing early signs of a recovery following a sharp pullback, with its price climbing slightly to $87.65, marking a 0.69% increase in the last 4-hour session. This upward movement comes after a dip to the $85 region, sparking interest among traders watching for a potential short-term reversal. With technical indicators and chart structures suggesting a shift in momentum, Litecoin could be gearing up for a rebound, if key resistance levels are cleared.
Litecoin Rebounds From Oversold Zone, Resistance Ahead
The Relative Strength Index (RSI) on the 4-hour chart has rebounded from oversold territory. After dropping to 32.72, the RSI has now climbed to 37.39, suggesting a cooling in bearish pressure. Interestingly, a bullish divergence has emerged, where the price made a lower low while the RSI made a higher low.
This divergence often hints at a potential price reversal. Supporting this outlook, the MACD indicator is also showing signs of improvement. While the MACD line remains below the signal line, it’s starting to converge, and the histogram bars are shrinking, signaling that selling momentum is weakening.
Looking at broader price structure and moving averages, Litecoin is currently hovering around the 9-period EMA at $87.58, which could act as a near-term pivot level. However, bulls face a stronger challenge in the form of overhead resistance between $91.18 and $94.22, defined by the 20-SMA and 200-SMA, respectively.
Price action throughout May has consistently rejected attempts to break above this zone, making it a key area to watch. According to the LuxAlgo signals, this region also aligns with previously established resistance zones that triggered sell-offs earlier in the month.
Despite the current bounce, Litecoin remains below its 200-SMA, indicating the overall mid-term trend is still bearish. For this recovery to gain real traction, bulls must push the price above $91.50, and ideally reclaim $94 to flip the momentum decisively in their favor. On the flip side, failure to hold current support could see the asset retesting the $84–$82 range, which previously served as a key demand zone in April.
Litecoin is attempting a short-term recovery with bullish divergence forming on the RSI and weakening bearish pressure on the MACD. However, the real test lies ahead, as LTC must clear multiple resistance levels to confirm a trend reversal. Traders should watch closely for a breakout above $91 and a MACD crossover to validate further upside.
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