According to U.Today, Litecoin (LTC) has recently formed a golden cross on its daily charts, capturing the attention of the cryptocurrency community. This development coincides with Bitcoin‘s significant rise, nearing the $100,000 mark and reaching a record high of $97,931. A golden cross occurs when a short-term moving average surpasses a long-term moving average, indicating potential upward price movement. For Litecoin, the 50-day moving average has crossed above the 200-day moving average, confirming this bullish signal.
The last occurrence of a golden cross for Litecoin was in February 2024, which led to a notable price increase, with LTC reaching yearly highs of $112. This historical context fuels traders’ optimism about the current situation. Analysts suggest that Litecoin’s golden cross could lead to a breakout, potentially pushing the cryptocurrency through key resistance levels and aiming for new yearly highs above $112. If successful, Litecoin might target the $300 mark. However, the extent of the price increase could be influenced by external factors such as market conditions and broader economic trends.
In recent trading sessions, Litecoin has surged from lows of $81 to $92, marking a 4% increase in the last 24 hours and an 11% rise over the week. Despite the positive implications of a golden cross, there remains a risk of market correction. A setback in the broader cryptocurrency market or a shift in investor sentiment could lead to a pullback for Litecoin. In such a scenario, Litecoin might test support levels near the daily moving averages of $71.06 and $72.94.
Additionally, a golden cross does not always result in an immediate price rally. Litecoin could experience a period of consolidation, where the price moves sideways as the market absorbs the new technical pattern. This scenario, while not immediately bullish, sets the stage for potential long-term growth. Overall, the formation of a golden cross in Litecoin’s charts is a significant development, but its impact will depend on various market dynamics and investor behavior.