Litecoin needs sustained upward pressure above $130 to target its highest price level since June 2019
Litecoin (LTC) has faced strong resistance at $130 but could end the year on a high if bulls strengthen above the barrier within the next few hours.
At the time of writing, the LTC/USD pair is changing hands around $128, 1.4% down in the past hour but up 3% on the day and 16% over the past seven days.
Litecoinâ€™s price action could also make or break above the $130 level depending on what happens with Bitcoin (BTC). The positive outlook could strengthen if BTC rallies above $28,000 and breaks the resistance line that has curtailed its dominance index over the last few days.
Meanwhile, LTC prices might dump if bulls fail to take initiative, allowing bears to target prices around $95â€”$93.
Is LTC/USD ready for another leg up?
Litecoinâ€™s recent upside strength saw its price double, surging from lows of $70 to within cents off $140.
The bullish momentum, however, wasnâ€™t strong enough to propel LTC price over the hurdle. The last three days saw a retreat to lows of $120, with attempts at retesting $140 thwarted by the presence of a bearish wall around $130.
As can be seen on the daily chart, bulls need to break above the $130 resistance level and sustain the momentum towards recent highs. If the upward action holds, LTC/USD could breach resistance at $146 to target a monthly close above $150, the highest price level since June 2019.
LTC/USD daily chart. Source: TradingView
On the contrary, if the price falls as a result of an altcoin sell-off, an initial support zone is at the 20-EMA ($111) and the psychological level at $100. Further declines could see buyers seek to defend gains at the main support levels around $95 and the 50-EMA ($93).
Bitcoin dominance index chart. Source: TradingView
As noted above, short term price action for LTC/USD is likely going to mirror that of Bitcoin (BTC). The two assets tend to correlate heavily. So, as BTC/USD is poised to cross above $28k again, Litecoin could benefit from the upside wave and post further gains. The same outlook could materialise if the Bitcoin dominance index (BTC.D) breaks higher above 70.
If we look at the monthly candle chart above, BTC.D is trending in an ascending triangle pattern. This suggests that thereâ€™s potential for the dominance index to break higher, likely triggering a bloodbath for altcoins. Or it could recoil off the resistance and dip as altcoins strengthen.