Important points
A breakout from the descending triangle could target $170. Litecoin faces strong resistance above $69. Short term growth potential is looking towards $90, maybe $100.
From September 2023 to February 2024, Litecoin (LTC) price has stabilized above $60, establishing a support zone and establishing upside potential.
After reaching $113 in April, LTC experienced significant volatility, leading to a price correction and the formation of a potential bullish pattern.
Litecoin price analysis
From September 2023 to February 2024, Litecoin remained stable above $60, forming a horizontal support zone and priming the rally.
By April 2nd, LTC had risen to $113 before experiencing a sharp decline.
This decline tested the upper end of the $70 support zone on April 13th and led to a brief recovery to $90 by May 21st.
However, the ensuing economic downturn caused prices to fall below mid-April levels.
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If we think of the previous rally as a five-wave impulse, the decline from April 1st appears to be the final wave of a correction. On August 5th, the price returned to the 0.786 Fibonacci level, a common correction endpoint.
According to Elliott Wave Theory, correction waves can retrace up to 100% without changing the bullish outlook. Furthermore, the formation of a descending triangle suggests that a breakout to the upside could mark the beginning of a new bullish phase and LTC could aim for $170 as the next high.
Litecoin price prediction
In the short term, Litecoin may position itself for growth.
The price has been consolidating around $63 since late August, and has finally broken out above the symmetrical triangle.
If the initial rally signals the beginning of a new uptrend and the symmetrical triangle formation represents a correction phase, then the next rally will see LTC target $90 as an interim target and the potential peak of this rally could be It could be $100.
LTCUSD breaks out of the symmetrical triangle but stops at $69 resistance | Credit: Nikola Lazic/TradingView
The rally from September 9 that led to the breakout could be the next rally. However, it has been stopped at the previous high resistance at $69. If it continues to rise and crosses this area, we will receive a strong signal of the next bullish period.
However, if the proposal is defeated, LTC could face further weakness and be worth less than it was on August 5th.
Read more: Litecoin Price Prediction 2024
Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, and should not be construed as, financial advice. We make no warranties as to the completeness, reliability, or accuracy of this information. All investments involve risk and past performance is no guarantee of future results. We recommend that you consult your financial advisor before making any investment decisions.
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