Litecoin [LTC] Hits A Ceiling; Possibilities For Deeper Correction Emerge

The dramatic rise in Bitcoin has also triggered extensive gains for Litecoin [LTC] as it appreciated by more than 15% over the past week. The silver crypto has been in sync as Bitcoin rallied and has also noted a strong bullish price movement prompted by strong buying interest as seen in the recent weeks.

Litecoin was up by 1.81% over the past day which pushed its price to $151.98. The crypto-asset was registered a market cap of $9.92 billion and a 24-hour trading volume of $18.62 billion, at the time of writing.

The bulls have been in control for quite some time now. Will this trend undergo a reversal anytime soon, or is the price primed for more gains. Let’s take a look at the technicals.

Litecoin [LTC] Daily Chart:

Litecoin [LTC] has strictly followed the course of two upward sloping trendlines of an ascending channel pattern on the daily timeframe. The coin appears to have touched its ceiling price. As it established a local top, the coin could now reverse its course and anticipate a bearish breakout in the near-term.

As noted by the Fibonacci retracement, several interesting support points were drawn out that could be of importance for the coin. Litecoin could potentially target its immediate support level of $139. If it fails to hold this level, the price risks dropping to another crucial level of $112.

MACD generated a strong buy signal as it formed a bullish crossover over zero after bouncing off following a correction. A move by the indicator into bullish territory can confirm that LTC was heading to make more gains in the coming days.

The OBV showed a consistent increase in volume as the price of the crypto-asset over the past several weeks. However, the RSI just hit the overbought zone which could imply a correction in the days ahead. As noted by the pattern formation as well as the overbought RSI, Litecoin could potentially witness a dip.

Having said that, it is highly unlikely that the coin would see a damaging correction. Besides, the coin found stiff resistance from the recently breached $161, hence the support levels to look out for were $139 and $112 respectively.