FxNews—Litecoin was not an exception to the cryptocurrency gain on Wednesday. After the price surged to the November 2 high and tested this point at $71.3 as resistance, the bears added pressure, which resulted in the LTCUSD price dip and test of the 38.2% Fibonacci support level. The bullish fair value gap area further supported the 38.2% Fibonacci.
As of this writing, LTC/USD trades at approximately $69.5, testing the 100-period simple moving average as resistance.
RSI and Stochastic Rise as Bullish Run Nears Key Signal Line
As for the technical indicators, the Awesome Oscillator histogram is green and nearing the signal line. Concurrently, RSI 14 and Stochastic values are rising and have room from the overbought area. This development in the technical indicators suggests that the bullish trajectory that began from the $65.4 resistance should resume.
Can Litecoin Break the $71.3 Resistance for a Bullish Rally?
The critical resistance level rests at $71.3, backed by the 61.8% Fibonacci retracement level. The bullish trend will likely resume if Litecoin’s price exceeds $71.3. In this scenario, the next bullish target could be the upper line of the bearish flag, the 72.8 mark. Furthermore, if the buying pressure exceeds $72.8, the bulls’ path to the October 29 high at $74.3 will likely be paved.
Conversely, a new consolidation phase would begin if Litecoin dips below the 38.2% Fibonacci retracement level and can stabilize below it. If this scenario unfolds, Litecoin will suffer from more losses, which could extend to the October 15 low at $65.4.