By yesterday, LTC had added $46 after sustained buy pressure which begun on the first week of November.
Generally speaking, this month has been phenomenal for cryptocurrency investors across the board and talking of good news, LTC traders and investors should gear up for more upswings considering the way technical indicators are set.
Volatility wise, we can see that price action is beginning to band in the weekly chart. Notice the way last week’s lows and resistance-now support at $68 was a perfect springboard for buyers. The end result was that close above upper BB at $86 as the week was concluded on November 26.
Furthermore, we can tell from the stochastics that the buy momentum is strong just by looking at how %k and %d are behaving. The sustained buy pressure has lead to the two moving in parallel and that is confirmed by the clear buy signal and price action increasing divergence from the middle BB.
In the daily chart, the main resistance trend line-previous support which was broken below on September 14 was broken above last week. Even though the stochastics were over-stretched on November 23 soon after that break above the ascending wedge, the high time frame momentum took precedence and the main resistance trend line gave way.
Given these developments, our immediate resistance line is this year’s highs of $98 last printed on September 1. Word of caution though, regardless of this buy pressure, we already have some minor over-valuation happening deep within a strong uptrend after yesterday’s close above the upper BB.
The uptrend is best visualized in our entry chart. The way the 20 period MA has been acting as a strong reliable support over the last 13 days is impressive. While doing so, notice the obvious price action divergence from the middle band along the upper BB. This hints at the strength of the underlying bullish trend.
Secondly, the last frontier and September 3 and 8 resistance now immediate support levels at $82 and $85 were broken and prices closed above them on November 26. Because of this, we shall be watching if LTC bulls will keep prices above our immediate support.
If they succeed and price actually close above November 25 highs of $89.88 then we this will be another wave of Bull Run. So, in light with these developments, we shall place a buy stop at $90 and be sync with the weekly buy trend just in case there is a bullish explosion.