How to spot Litecoin price’s bigger bullish picture ahead of the Ethereum Merge
|- Litecoin price sustains its uptrend within a parallel ascending channel.
- The Ethereum Merge is just 15 hours away while bleeding continues across the crypto space.
- Litecoin sits on top of robust support at around $57.47 – confirmed by IntoTheBlock’s IOPMAP on-chain model.
Litecoin price is flirting with $60.00 after holding support around the same zone. The token continues to form a higher high and low pattern despite the many price corrections since its primary support at $42.00 in June.
The largest smart contracts platform, Ethereum, is set to activate the biggest software upgrade in its history, called the Merge, in about 15 hours from the time of writing. Ethereum developers have been working tirelessly to transition Ether from a proof-of-work (PoS) mechanism to a more energy-efficient proof-of-stake (PoS) consensus.
Market participants believe that the Merge will positively impact Ethereum price and the entire cryptocurrency market. However, efforts to push prices higher have been futile amid strong external forces like rising inflation, a possible economic recession in Europe and the Russia-Ukraine war.
Read more: $69 billion wiped out of global crypto market 24 hours before Ethereum Merge
Litecoin price builds successive robust supports for its recovery journey
An ascending channel drawn on LTC/USD daily chart reveals a generally up-trending crypto asset. It is worth mentioning that price rarely moves in a straight line, so investors should acclimatize to frequent dips, especially in the ongoing bear market.
In other words, it may be rewarding to taper expectations while carefully examining the Litecoin price bigger technical picture. In addition to the lower boundary support of the ascending channel, LTC boasts several robust support levels at the 50-day (yellow) Simple Moving Average (SMA), holding at $60.00, the 100-day SMA (blue) at $56.10, the buyer congestion at $48.00 and its primary anchor at $42.00.
LTC/USD daily chart
Litecoin price needs to defend the support at $60.00 to secure an incoming bullish trend reversal. Reinforcing the uptrend is the Moving Average Convergence Divergence (MACD) indicator above the mean line. For now, all eyes are glued to the LTC price’s ability to lift past the channel’s throughline’s stubborn resistance- roughly at $63.00. If bulls reclaim this level, $67.00 and $72.00 may come within reach.
Litecoin IOMAP on-chain model
A bullish outcome is probable if investors consider support highlighted by IntoTheBlock’s IOMAP on-chain model between $56.98 and $58.83. Approximately 298,500 addresses previously scooped up 5.88 million tokens in this range. These holders are unlikely to give up their gains, especially with Litecoin price flaunting a potential bullish reversal.
On the upside, traders should not ignore the seller congestion between $60.70 and $62.20. The 337,900 addresses that purchased 4.99 million tokens may absorb the building bullish momentum – eventually delaying or sabotaging the impending Litecoin price bullish move.
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