Disclaimer: The results of the following article are the sole opinions of the author and should not be construed as investment advice
Litecoin has bounced back well from a widening wedge setup on its chart. After the decline, buyers re-entered the market around the $ 160 mark, pulling the price off its weekly lows. The near-term outlook seemed positive again as the key indicators underwent some new hires.
Additionally, the alt could see stronger gains over the next 24 hours if it closes above a major resistance zone. At the time of writing, Litecoin was valued at $ 176, up 6% over the past 24 hours.
Litecoin 4 hour chart
The $ 162 rebound saw consecutive green candles on LTC’s 4-hour chart. Two June swing highs – one at $ 180 and the other at $ 185 – now represented the next challenge for Litecoin. A successful close above these levels would propel the alt towards its local high of $ 190, a further spike of 7% compared to the editorial level of LTC.
On the contrary, a failed breakout attempt would likely cause LTC to move sideways just below the $ 180 mark.
The indicators were quick to respond to the reversal of an LTC and set a favorable tone. The MACD envisioned a bullish crossover as buying pressures mounted in recent sessions.
The Relative Strength Index made a double high, favored the bulls, and climbed back above 50. The Awesome Oscillator saw a comeback above the half-line – something that would give the market a buy signal.
There has been a lot of optimism about Litecoin’s near-term outlook, with only one small drawback. The best scenario would be a surge towards $ 190 if the price closes above certain swing highs.
Conversely, sideways movement is also possible if the immediate resistance level of LTC prevents further upward movement.