LTC/USD edged north on Tuesday, breaking above the psychological round figure of 60.00. On the 23rd of August, the cryptocurrency broke above the downtrend line drawn from the peak of the 25th of July, and now looks to be respecting a short-term uptrend line taken from the low of the 14th of August. All these technical signs suggest that the move above the 60.00 barrier may have signaled a near-term trend reversal to the upside.
In our view, the break above 60.00 may have opened the way for the next psychological zone of 65.00, also marked by the peak of the 9th of August. Now, if the bulls are strong enough to reach and breach that hurdle, then we may see them setting the stage for the next round figure of 70.00, or the 72.50 zone, defined by the inside swing lows of the 29th of June and the 6th of August.
Shifting attention to our short-term momentum studies, we see that the RSI moved higher and now appears ready to break above its 70 line, while the MACD lies above both its zero and trigger lines. These indicators reveal upside speed and corroborate our view for Litecoin to continue trading north for a while more.
On the downside, we would like to see a clear dip below the short-term upside line drawn from the low of the 14th of August before we start examining whether the bulls have abandoned the battlefield, at least in the short run. Such a dip could initially aim for the 54.00 support barrier, which if broken, could open the path for the round number of 50.00, slightly above the low of the 14th of August.
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