LTC Bulls Eye the Sunday High of $116 to Bring $120 into View

Key Insights:

• Litecoin (LTC) enjoyed a bullish end to a breakout week, gaining 6.02% on Sunday to end the day at $113.62.
• Buyer appetite returned after a bearish Saturday, with the Litecoin Halving Event driving demand.
• The technical indicators are bullish, signaling a return to $120.

Litecoin (LTC) rallied by 6.02% on Sunday. Reversing a 1.39% fall from Saturday, LTC ended the week up 28.70% to $113.62. Notably, LTC avoided sub-$100 for the second time since April 2022.

A bearish start to the day saw LTC fall to an early morning low of $105.18. Steering clear of the First Major Support Level (S1) at $102.5, LTC rose to a mid-morning high of $116.05. Litecoin broke through the First Major Resistance Level (R1) at $112 before easing back to sub-$110. However, Litecoin broke back through R1 to wrap up the day at $113.62.

The Litecoin Halving Event Delivered a Bullish Sunday Session

After returning to the crypto map on Friday, LTC consolidated Friday’s breakout with the 6.02% gain on Sunday.

The investor focus remains on the next Litecoin Halving Event set to take place on August 2 at 1701 GMT. The previous having date was August 5, 2019.

Investors expect a bullish run in the lead-up to the Halving Event as seen before the second halving event in 2019. In 2019, LTC surged to a June high of $160.62 before profit-taking led to a pre-halving event pullback. Unlike this year, Litecoin enjoyed a six-month winning streak to June 2019, rising to a June high of $160.62.

While SEC regulation by enforcement may have delayed the pre-Halving Event rally, the bulls remain in the driving seat with less than 30 days remaining.

There were no crypto events to influence investor sentiment or derail the LTC run at $120.

The Day Ahead

It is a busy Monday session, with US economic indicators likely to draw interest later today. However, while the ISM Manufacturing PMI numbers for June will influence market risk sentiment, LTC may show a limited response to weak numbers.

LTC could see momentum build after last week’s gains. However, investors should monitor SEC chatter and regulatory activity, which could impact a Monday breakout.

LTC Price Action

This morning, LTC was down 1.02% to $112.46. A mixed start to the day saw LTC rise to an early high of $114.98 before falling to a low of $111.86.

LTC Technical Indicators

Looking at the EMAs and the 4-hourly candlestick chart (below), it was bullish signals. LTC sat above the 50-day EMA, currently at $98. The 50-day EMA also pulled further away from the 200-day EMA, delivering bullish signals.

A hold above the Major Support Levels and the 50-day EMA ($98) would support a breakout from R1 ($118) to target R2 ($123). However, a fall through S1 ($107) would bring S2 ($101) and the 50-day EMA ($98) into view. A fall through the 50-day EMA would send bearish signals.

Looking at the 14-4H RSI, the reading of 71.39 indicates a bullish stance, with buying pressure outweighing selling pressure. The upward trend aligns the RSI with the EMAs and signals a run at the Sunday high of $116.05 and $120.

Resistance & Support Level