Litecoin (LTC) is looking at a bullish breakout, having clocked a one-week high earlier today.

The world's fifth largest cryptocurrency by market capitalization rose to $175 at 17:19 UTC – the highest level since March 14 – and was last seen changing hands at $173, as per CoinMarketCap.

The 26 percent rise from the March 18 low of $137 indicates the sell-off from the Feb. 20 high of $254 has ended.

However, trading volume has dropped by 17 percent since March 18, suggesting the gains might be short-lived. Further, the 24-hour trading volume of $0.5 billion, stands well below the three-month average daily trading volume of $0.94 billion.

Still, there are reasons to be optimistic as, unlike bitcoin, the cryptocurrency is trading well above its 200-day moving average (MA), according to GDAX data. Further, the price chart analysis indicates LTC has created a bull flag continuation pattern.

Daily chart

CoinDesk - Unknown

View

  • A bull flag breakout would revive the bull run and possibly yield a rally to $300–$320 in the longer term.
  • Repeated failure to beat the flag resistance could yield a pullback to $150, but a bullish-to-bearish trend change is likely only below the 200-day MA support of $141.

Litecoin and USD image via Shutterstock

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC