Litecoin surged 9.66% in an impressive breakout but has since faced rejection at a key high time frame resistance. The move now sets up a potential range-bound structure between support and resistance.
Summary
- Litecoin surged nearly 10% before getting rejected at the $130 resistance level.
- Price is now range-bound, with key support near the point of control and a bullish structure still intact.
- Holding support could spark another breakout; losing it may lead to extended consolidation.
Following its recent rally, Litecoin (LTC) has hit a technical ceiling near $130, an area that previously acted as major resistance on higher time frames. Despite the rejection, price action remains structurally bullish with volume-backed support below. The next few sessions will be key in determining whether LTC consolidates or pushes toward another breakout attempt.
Key technical points
- Major Resistance: $130 high time frame level continues to cap price action.
- Support Zone: Point of control and Fibonacci confluence area providing structural backing.
- Market Structure: Bullish with higher highs and higher lows intact.
Litecoin’s recent move has brought renewed attention to the asset after climbing nearly 10% in a strong impulsive leg. This rally tested the $130 resistance level, a historically significant price point that has repeatedly served as a barrier in previous cycles. The rejection here was not unexpected, and price has now entered a potential range as the market digests recent gains.
The formation of this range appears to be developing between the $130 resistance and the point of control, which is situated near a Fibonacci confluence zone. This support region represents a key structural level. If it holds, it may serve as the foundation for a higher low formation and another attempt to break through resistance.
From a volume profile perspective, there is clear evidence of increasing volume, which is typically a healthy sign during consolidations. As long as the point of control is respected on any retests, the structure remains intact and suggests accumulation rather than distribution.
Market structure continues to print higher highs and higher lows, reinforcing the bullish trend. The current pullback can be viewed as a healthy correction within an ongoing trend, especially if it confirms support above major volume levels. If price can reclaim the $130 swing high, the next leg of momentum is likely to accelerate due to the built-up liquidity above that level.
The value area high is also acting as a soft barrier here. Previous interactions with this level have led to rejections back to the point of control. This time, a clean hold of the point of control would shift the balance of power back to the bulls and likely result in another attempt at the high time frame resistance.
Overall, the price action remains technically bullish, and the current pullback provides a necessary test of market strength. Traders should watch closely for confirmation signals around the point of control.
What to expect in the coming price action
If Litecoin holds the point of control, expect a renewed push toward $130 and potentially higher. Failure to hold could lead to more extended ranging. Market structure remains bullish for now.
