- Litecoin price attempts to outperform Bitcoin and Ethereum.
- A rally of over 100% is likely if Litecoin can crack above some key resistance levels ahead.
- Litecoin is on target to make its own, new all-time highs if conditions are favorable.
Litecoin price ended its Wednesday trading session with an impressive 10% gain. Wednesday was the most significant percentage gain since September 3rd. However, unlike Bitcoin and Ethereum, Litecoin still has not made new all-time highs and needs to cross above some critical resistance levels before moving higher.
Litecoin price must break out above $233 before it can rally higher
Litecoin price action, while bullish over the past few days, continues to lag in overall longer-term performance compared to Bitcoin or Ethereum. Some of that underperformance could be related to the nearby swing high at $233. The final high volume node on the 2021 Volume Profile exists between $220 and $233, so it is no wonder why Litecoin has experienced a slight pause despite the broader bullish sentiment.
However, beyond $233 is a wide-open space for Litecoin price to rally higher with little resistance. The 2021 Volume Profile thins out considerably after $233, which means Litecoin bulls will have an easier time moving higher than bears will have moving Litecoin price lower. Because Litecoin has been lagging not just Bitcoin and Ethereum but the broader altcoin market as a whole, Litecoin could generate some surprising gains.
LTC/USD Daily Ichimolku Chart
Traders should be cautious of any extremes in the Relative Strength Index, Composite Index and Optex Bands oscillators. If all three of the listed oscillators are at extremes, further upside potential could be temporarily limited. This is especially true if those extremes are found during the weekend when liquidity thins out, and it’s easier for whales to move the market.
While unlikely given the present bullish sentiment market-wide, a close at or below $160 would likely trigger moves that test Litecoin price below the $100 value area.