As it approaches the $124.62 support level, the price of Litecoin is showing a bullish reaction.
LTC is expected to rise by 20% to $149.22 if buying demand continues to increase.
The bullish thesis would be invalidated if the bears manage to break through the support level at $118.
After a two-week consolidation period, the price of Litecoin is currently showing a price reversal. LTC is likely to revisit the range’s upper limit in an attempt to break it.
On July 14, LTC price broke through the $130.59 support level, but bounced off the immediate resistance at $124.62. This impulsive 20 percent increase seen between June 27 and June 29 could be analogous to this abrupt surge in buying pressure leading to a modest uptick.
If this scenario plays out, investors may anticipate the price of Litecoin to rise by 20% to $149.23. While three earlier tries to break through this tough barrier were unsuccessful, a decisive 6-hour candlestick close above it will signify buying strength.
If LTC bulls can slice through $156.08 and $160.85, they may be able to recruit previously uninterested investors, extending the 20% gain by another 10%.
6-hour chart of LTC/USDT
While expecting a comeback to send the Litecoin price higher is optimistic, investors should not rule out the prospect of a rapid decline. A rise in bearish momentum that pulls LTC below $124.62 signals a lack of bidder interest.
If sellers force the price of Litecoin below $118.60 without enabling buyers to recover, the bullish thesis will be invalidated, and in some bearish situations, an 11 percent sell-off to the range bottom of $104.78 would occur./n
