Litecoin Surges: Green Daily Gains and $200 Rally in Sight

Litecoin, the seventh-largest cryptocurrency by market capitalization, has shown significant recovery over the past week, with its price turning green daily following a double-digit gain. This performance places Litecoin at the top of the daily recovery among the top 20 cryptocurrencies.

February began on a challenging note for Litecoin, following a late January rejection that led to a dramatic crash the previous week. The price plummeted to a multi-month low of $80, but the asset demonstrated remarkable resilience by recovering above the crucial $100 mark and maintaining stability throughout the week.

The buyers gained further ground as demand increased, and the important $100 mark held well. As of now, Litecoin is trading at around $117. The latest market structure indicates that Litecoin is poised for a new rally on the daily chart. A surge above the previous peak could set the stage for a substantial rally, potentially reaching $200 before retracing.

However, if the price fails to break above the immediate $125 resistance, bears may resume pressure, leading to another loss before the bulls regain control. It is essential to note that Litecoin has not only halted selling on the daily timeframe but has also signaled a fresh buy. This positive signal could facilitate a bullish move in the coming days if it plays out.

Following the recent positive move, the potential resistance levels on the way up are $125.2 and $146. A full recovery to the $148 high would set the market up for bigger gains. The $110 level is now considered a pullback support. If the price dips below the $100 mark, the subsequent levels to consider for support are $92.6 and $87. A drop to these levels could cause more pain in the market.

In summary, Litecoin has shown a remarkable recovery over the past week, with its price turning green daily following a double-digit gain. The asset is now poised for a new rally on the daily chart, with the potential for a substantial rally to $200 before retracing. However, bears may resume pressure if the price fails to break above the immediate $125 resistance. As always, it is crucial to conduct thorough research before making any trading or investment decisions.