Litecoin [LTC] jumped over 8% over 24 hoursto about $62as buyers returned across the wider crypt market.
The move carried LTC to its highest price since June. However, the area between $63.80and $65 could determine whether the rally continues or begins to lose momentum.
Litecoin trading activity nearly doubles
Market data showed Litecoin rising from below $57to an intraday high near $63.80before giving back some gains.
Its 24-hour trading value soared about 93%to over $520 million. Both value and price rose, which implies more traders joined the market.
However, the coin was not rising alone. It was joined by Bitcoin, which increased 5.7%, breaking above $85,000, and several of the other large crypto coins, too.
In its latest move, Litecoin has now extended its recovery surge from around $51.50 to $62and more. That is still only close to 20 percent since bottoming.
Can LTC move beyond $65？
The daily chart confirms that Litecoin is now moving above the levels that previously prevented it from recovering.
Also trading well clear of its immediate past averages, which are clustered around the $50-$55 level. What this means is that the market has moved from floundering beneath this area to seeing it as a base or area to work with.
The first challenge now sits near the $63.80price area, which is the sessions current high. After that level, $65is the main level to watch.
Source: TradingView
A daily close above $65will show that not only have the buyers kept control following the rise, but it may also open the door to a much bigger bounce.
If its not able to clear that area it would not immediately end the rally. LTC may just retreat towards $58-60and still be sitting close to its recent progress.
A deeper fall below that range would bring attention to the $54–$55price area, where buyers may attempt to defend the breakout.
The daily candle was still open when the chart was captured. Litecoins closing price will therefore provide a clearer signal than its temporary intraday high.