Important points
Litecoin remains above $60, establishing a strong base of support. A breakout of a descending triangle can lead to a bullish phase. The upside price target is $170. The downside risk is revisiting August lows.
Litecoin (LTC) price action over the past year has seen stabilization, spikes to new highs, and subsequent corrections, potentially leading to key moments in the trend.
This analysis examines key movements in LTC, including support levels, wave patterns, and potential targets, providing insight into the next important moves for this cryptocurrency.
Litecoin price analysis
From September 2023 to February 2024, Litecoin remained stable above $60, establishing a horizontal support zone and setting the stage for a potential bull market.
By April 2nd, LTC had soared to $113 before facing a sharp decline.
This decline tested the upper end of the $70 support zone on April 13th and prompted a short-term recovery to $90 by May 21st.
But subsequent declines have pushed prices below mid-April levels.
Read more: Litecoin Price Prediction 2024: LTC Price Analysis LTCUSD Could Begin a Bullish Phase |Credit: Nikola Lazic/Tradingview
If we think of the previous rally as a 5-wave impulse, the decline from April 1st is the final stage of the correction phase. On August 5th, the price returned to the 0.786 Fibonacci level, the end point of a typical correction.
According to Elliott Wave Theory, correction waves can retrace up to 100% without destroying the bullish outlook.
The formation of a descending triangle suggests that a breakout to the upside could mark the beginning of a new bullish phase, with LTC potentially aiming for $170 as the next high.
Litecoin price prediction
In the short term, Litecoin may be positioned for growth. Since late August, the price has consolidated around $63 and recently broke out above the symmetrical triangle.
It reached and rejected the horizontal resistance at $71, but is now testing the upward support.
LTCUSD is still in its second wave |Credit: Nikola Lazic/Tradingview
If the initial rally signals the beginning of a new uptrend, and the symmetrical triangle formation represents a correction phase, then in the next uptrend, LTC will aim for $90 as a tentative target and increase the potential of this rally. It could peak at $100.
Previously, we expected the rally from September 9th to be a third wave, which would be confirmed if the breakout was successful. Since LTC has reversed, we count this as part of adjustment wave 2.
A break above the $71 level would be a strong signal indicating the beginning of a bullish phase.
However, if LTC fails to break out, it could face further decline and reach levels lower than those seen on August 5th.
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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