- Litecoin prepares for lift-off as it slices through a critical resistance at $170.
- LTC's recent price action resembles a W-shaped recovery and is primed for a 20% surge soon.
- On-chain transactional data shows little-to-no resistance ahead.
Litecoin price has seen incredible gains of over 350% since late September 2020. With the entire market in a bull run, this rally could push LTC towards the next resistance level at $220.
Litecoin price poised to enter $300 territory
Litecoin established a strong bull trend as the price closed above the critical resistance level at $170 on February 9. At the time of writing, LTC was trading at $190, a level last seen almost 1,000 days ago.
The W-shaped recovery seen on the 1-week chart shows that the next target is $225. Considering the bullish momentum in the broader market, this 20% rise should be a walk in the park for LTC.
LTC/USD 1-week chart
The IntoTheBlock's In/Out of the Money Around Price (IOMAP) model shows a small cluster of investors around the $190 resistance level, where roughly 91,200 addresses purchased nearly 11,000 LTC. Hence, a surge towards $220 seems attainable.
On the other hand, Litecoin sits on top of a stable support level at $175, where 62,400 addresses purchased 2.37 million LTC. Hence, any downward price action will be supported by these investors who may buy more LTC to prevent seeing their investments go underwater.
Litecoin IOMAP chart
However, an unforeseen event causing investors to panic sell could generate enough selling pressure to breach the $175 support level. Under such circumstances, Litecoin could pull back to the demand barrier at $150.
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