Litecoin Price Surges Past Bollinger Upper Band Amid Warning Signs of Bull Trap

The Litecoin price has surged by 5.23% to break through its Bollinger upper band at $46.86, but this move may be a bull trap.

According to Felix Pinkston, the MACD histogram is flatlined at zero and taker sell volume is running 36% hotter than buys, indicating that the momentum engine has stalled.

The short-term moving average stack is aligned, with price sitting above the 7-, 20-, and 50-day SMAs. However, the 200-day SMA at $50.78 remains a macro obstacle, casting doubt on Litecoin's recovery rally.

Resistance lies at $47.94, which needs to be cleared with conviction for any further gains. Below this level, support is provided by the Bollinger middle band at $45.05 and the structural floor at $43.41.