Litecoin Price News: Can LTC Jump Back to $100 After Bullish Breakout?

During this period, this Bitcoin hard fork has produced gains of just 2% while Bitcoin itself has gone up by 11.9%.

Chatter about the imminent approval of an LTC-linked exchange-traded fund (ETF) seems to have done little to keep the price afloat as the token has accumulated annual losses of 14.5%.

Meanwhile, trading volumes seem to have dried up lately as well as they currently account for only 6% of the token’s circulating supply. Similarly, open interest has dived from an annual high of nearly $1 billion in futures contracts traded in a single day to $550 million at the time of writing.

Is Litecoin (LTC) poised to underperform its peers this year or is there a chance that the token will climb back to at least $100?

LTC Will Soon Reach a Key Resistance Level

As cryptos recover, LTC seems poised to retest its 200-day exponential moving average (EMA) if it continues to move higher in these next few days.

Although the token broke above its 21-day EMA, this bullish breakout was not accompanied by above-average trading volumes.

Hence, the bullish case for LTC is not as strong as that of other tokens, whose trading volume nearly tripled as they pushed through this key resistance.

It is also worth noting that LTC’s trading volumes at these levels are below the value area of this year’s volume profile. Hence, interest from market participants at these levels seems to be weak.

As the price nears the 200-day EMA, buyers’ commitment to keep the rally going will be put to the test.

Momentum indicators show signs of weakness as the Relative Strength Index (RSI) is hovering right above the signal line (14-day SMA). This increases the odds of a bearish breakout and a shift in momentum at any point.

Moreover, the MACD’s histogram shows that positive momentum has been steadily decreasing in the past few days.

A Downtrend Has Begun in the 1H Chart

The key support to watch at this point is the 21-day EMA, which has acted thus far as the market’s top buying area.

Meanwhile, we can see that the price has been retreating today after it tagged an order block around the $91 to $95 area that previously pushed the price much lower.

As the price retests this key area, traders should be careful as a strong reversal would indicate that this may have just been a bear market rally for Litecoin and not a full-blown recovery.

At this point, the odds of a push toward the $100 level seem quite low unless the price can move above this order block. This would prove that there is significant support from buyers to push the price higher.

Looking at a lower time frame, we can see that the price action has drawn liquidity two times already from this OB and retreated in both instances. This means that selling pressure at this level is still quite strong.

Although bulls have struggled to keep the downtrend contained, there was a change of character in the price action in the hourly chart as the price broke below its previous low after it failed to make a higher high.

Hence, Litecoin’s outlook is bearish and a retest of the 21-day EMA seems imminent at this point, meaning a 5.6% downside potential from current levels.