Litecoin rose from $114 to $131.82,, showing strong upward momentum and now tests a critical diagonal resistance level.
The RSI has reached 80.88, which is above the typical overbought threshold and may hint at possible price pauses.
Price movement over the diagonal barrier could confirm a bullish setup and attract higher trading interest from market watchers.
Litecoin (LTC) traded at $131.82 after reaching an intraday high of $131.82, pushing toward a major diagonal resistance on lower time frames. The move follows a sharp rally from $114.00, marking a strong upward momentum that caught traders’ attention. Data shows this breakout attempt comes amid overbought conditions, with the Relative Strength Index (RSI) at 80.88.
https://twitter.com/j0hnnyw00/status/1955400411776684260 Aggressive Climb Challenges Resistance
The one-hour LTC/USDT perpetual futures chart from MEXC highlights a clear bullish surge over the past sessions. Price action formed a strong ascending pattern, driving the market toward a long-established diagonal resistance zone. This level has historically acted as a decisive barrier for short-term rallies.
The latest move represents a +1.46% gain in the last 24 hours, with the high hitting $131.82. This follows a sequence of steady gains that began near $114.00, breaking through multiple horizontal resistance zones along the way.
Technical observers note that breaking the diagonal resistance could open the path toward higher levels. However, the overbought RSI reading suggests potential short-term consolidation or profit-taking before further continuation.
RSI Signals Overbought Territory
The RSI indicator stands at 80.88, notably above the 73.21 upper reference threshold. Historically, readings above 70 suggest overbought conditions, often preceding pullbacks or sideways price action.
Despite this, Litecoin has maintained strong upward momentum without major retracements during the recent run. The bullish leg began after the last “Bear” signal on the oscillator flipped to sustained buying pressure, erasing previous declines.
Traders are closely watching whether buyers can maintain control long enough to force a breakout. Sustained price action above the diagonal resistance would validate the bullish setup, potentially inviting higher trading volumes.
Potential for Breakout or Short-Term Pause?
The price currently aligns with the extended dashed trendline marking the upper diagonal barrier. A confirmed breakout above this technical level could shift the market narrative toward higher medium-term targets.
However, the combination of overbought conditions and a steep ascent increases the risk of a near-term pause. Such pauses often allow the RSI to normalize before resuming the dominant trend.
Market participants are left with a critical question: will Litecoin’s bullish momentum be strong enough to sustain a breakout beyond the current resistance?
If momentum persists, the next key technical challenge lies above $132.00, where psychological resistance and potential seller interest may emerge. For now, the chart structure reflects a decisive attempt to transition from consolidation into a more aggressive bullish phase.
