Litecoin Nears $90 Resistance: Can Bulls Break Through for Gains?

Litecoin: Can It Break Through the $90 Barrier?

Greetings, fellow investors!

Litecoin (LTC) has been making waves lately, with a 12% surge in price over the past week. But its upward trajectory has hit a roadblock at the $90 mark. Will the bulls be able to charge through this resistance and lead LTC to new heights?

Growing User Base Fuels Optimism

Despite the setback, there are reasons for optimism. On-chain data from Santiment reveals a surge in new users joining the Litecoin network. In March alone, the number of LTC holder wallets grew by 90,000, indicating a burgeoning user base and fresh capital entering the ecosystem.

Technical Hurdles to Overcome

While the user growth is encouraging, LTC faces two significant technical hurdles that must be cleared to unlock further gains. The first is a trend line connecting three consecutive lower highs, which currently resides below the $90 resistance level. The second is the psychological barrier of $100, which has proven to be a formidable obstacle in the past.

Target: $120 Rally

If LTC can overcome these obstacles, it could trigger a breakout rally towards $120. Crypto News Flash reports that some buyers may target the weekly resistance at $119.84 for potential profits. Such a move would represent a substantial 32% increase from current levels.

Bullish Indicator: Rising RSI

The Litecoin Relative Strength Index (RSI) has also shown a positive uptick, rising from 60 to 67. The RSI measures the strength of an asset's price movements and can help identify potential inflection points. Readings above 70 typically indicate overbought conditions, while values below 30 suggest an oversold asset.

Sustained Buying Pressure

The recent surge in LTC RSI indicates a surge in buying pressure, suggesting heightened investor interest and increased market activity. This bullish indicator points to the possibility of further price gains if LTC can maintain its upward momentum.

Conclusion

Litecoin faces a challenge at the $90 resistance level, but the growing user base and technical indicators suggest a potential for further gains ahead. If bulls can overcome the remaining hurdles, LTC may embark on a rally towards $120. Keep an eye on the price action and RSI in the coming weeks to assess the potential for a breakout.