Litecoin (LTC), once thought of as the “silver to Bitcoin’s gold”, has been performing well in the new year and last week an important price level was defended. This defense likely secured, by any reasonable criterion, Litecoin’s uptrend for the foreseeable future. In the shorter term, we might need to see more consolidation before further moves.

Starting on the weekly LTC/Bitcoin chart, the most important feature to notice is the blue support band. This price zone is significant for Litecoin going all the way back to 2015 (yeah), and after repeated tests into that zone in the last few weeks, LTC closed far above it this Monday.

Still in the MTF uptrendLTC chart by TradingView

We can also note the 8 EMA which is in the process of crossing bullish over the 21. Litecoin is still coursing up with its MTF uptrend; unlike Bitcoin, Litecoin never lost its MTF trend (on this trading pair, at least) although we may see that soon.

Moving to the daily LTC/Bitcoin chart, we see a more detailed cross-section of this development, and here things look less bullish for the MTF. A double top is forming with a sharp bearish divergence on the RSI, and the histogram has lost a lot of steam in its progress toward the positive side of the range.

Either option is fineLTC chart by TradingView

Even if LTC loses this MTF channel, some consolidation above the multi-year support zone would not damage the HTF uptrend. Furthermore, given the larger uptrend, Litecoin could easily reverse and break the current local top out of nowhere if the market pushes it.

Finally, turning to the weekly LTC/Dollar chart, we see a couple of positive signs. First, price has held well above $74.50, closing above it two weeks in a row. Moreover, the 8 EMA has crossed bullish over both the 21 and 55 EMAs. This is very positive, as the EMA here is about halfway to a full bullish configuration.

Looking stable in the $70 areaLTC chart by TradingView

The histogram here might be rolling over soon, as it is on Bitcoin’s and many other crypto charts. But the last three weeks have see a flat bullish contraction up, so strictly speaking we don’t see it rolling over yet.

In sum, Litecoin has held on to almost all of its gains from 2020. Meanwhile, several key indicators look bullish, and key price levels have been taken. In the shorter term, it is generally consolidating sideways; so we have something to look forward to when the crypto markets start to wake up.

The views and opinions expressed here do not reflect those of and do not constitute financial advice. Always do your own research.

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