Litecoin LTCUSD trades higher but is the underperformer today as the major cryptocurrencies follow the bitcoin sharply higher. Bitcoin managed to return above the 8,000 mark for the first time since March 8. Ethereum also adds 6% at 209.37 and makes eight-week highs, as the bulls are in full control since the previous week after the price breached above the 100-day moving average. Ripple has also managed to break today above the 100-day moving average and now targets the next resistance area at 200-day moving average.
Many analysts now support that the bitcoin halving event on May 11 is the catalyst for the cryptocurrencies rally today. The risk-on sentiment also supports cryptocurrencies after Gilead Sciences reported positive results from two studies that showed that remdesivir could be a viable treatment to coronavirus.
Litecoin (LTCUSD) has dropped to the number seven in the ranking of the capitalization of the digital assets. The market cap of Litecoin has reached today 3.08 billion while the total capitalization of the 100 biggest cryptocurrencies has surpassed 238.74 billion.
Litecoin is 3.82% higher at $47.55 where it stands the resistance of the 38.2% of the Fibonacci retracement from February highs. The long term technical outlook remains bearish but the recent improvement after LTCUSD breached above the 50-day moving average gives bulls the chance to attempt a move up to the 200-day moving average.
On the upside, first resistance stands at $47.63 the 38.2 Fibonacci retracements. In case of a move higher the next hurdle stands at $52.03 the 200-day moving average. A credible close above that level more sellers might step in targeting 53.66 the 100-day moving average.
On the other hand, initial support will be met at $45.65 the daily low. The low from yesterday’s trading session at 43.46 might attract some bids. A breach of the 50-day critical moving average at $40.68 will cancel the recent bearish momentum and a return to March lows can’t be ruled out.