Litecoin Buying Surge Could Propel LTC to $80 Amid Bullish Momentum

Litecoin sees a rise in buying activity, pushing the token towards a potential $80 target as bullish signals strengthen, though traders should remain cautious of possible reversals.

Litecoin [LTC] has been experiencing a consistent upward trend since August 5, driven by increased buying activity. According to CoinMarketCap, Litecoin trading volumes have surged by 16%, aligning with the growing interest in the token. Following the recent crypto market downturn, sparked by weak U.S. employment data and underperforming tech stocks, Litecoin has managed to recover steadily, posting a seven-day gain of around 7%.

X (formerly Twitter) analyst Dann Crypto has highlighted the unusual price action of Litecoin, noting a V-shaped recovery. The token has maintained a straight upward trajectory without significant dips, a rarity in the volatile crypto market.

The continued gains for Litecoin appear to be largely driven by strong buying pressure. The Relative Strength Index (RSI) on the daily chart indicates a gradual increase in buying activity, with the RSI line consistently making higher highs since early August. Additionally, the Money Flow Index (MFI) at 68 suggests more inflows into Litecoin than outflows, signaling bullish sentiment among traders.

Despite this positive momentum, traders should remain cautious. The Awesome Oscillator (AO) is displaying red histogram bars, indicating that while Litecoin remains in a bullish phase, the strength of the uptrend might be waning, potentially leading to a reversal or short-term pause.

Supporting the bullish outlook, the Simple Moving Averages (SMAs) also point to continued upward movement. The 150-day SMA has moved below the current price, reinforcing a positive long-term trend. Moreover, the 50-day SMA is on the verge of a bullish crossover above the 150-day SMA, suggesting that further upward momentum could be building.

Litecoin has faced resistance at the 100% Fibonacci level ($68) multiple times. Should LTC manage to break through this resistance, it could target the $79-$80 range. Data from IntoTheBlock shows that 577,000 addresses bought LTC between $65-$69, meaning the $68 resistance level could hold if these traders decide to sell and secure their gains.

However, the futures market is showing some bearish signs, with the long/short ratio on Coinglass dropping to 0.91, indicating a slight preference for short positions over long ones. As Litecoin’s rally continues, traders should watch these signals closely.

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