Important points
Litecoin has remained stable above $60 since September. The April decline tested the $70 support zone. A potential breakout could target the next $170 level.
Since the August lows, Litecoin (LTC) price movements have broken through major support and resistance zones, hinting at the possibility of change.
After recovery, it began to move laterally, forming a symmetrical triangle under horizontal resistance.
After recently breaking out of both major resistances, a retest was conducted that points to future prospects.
Litecoin price analysis
From September 2023 to February 2024, Litecoin maintained stability above $60, forming a horizontal support level and establishing potential upward momentum.
By April 2nd, LTC had risen to $113, but then suffered a significant decline.
This decline tested the upper end of the $70 support zone on April 13th and briefly recovered to $90 by May 21st. However, subsequent declines have pushed prices below mid-April levels.
LTCUSD is currently above horizontal resistance. Credit: Nikola Lazic/TradingView
If we consider the previous rally as a 5-wave impulse, the decline after April 1st could be the final stage of a correction. By August 5th, prices had returned to the 0.786 Fibonacci level, in many cases marking the end of such a correction.
According to Elliott Wave Theory, correction waves can retrace up to 100% without changing the broader bullish outlook.
The formation of a descending triangle indicates that a breakout to the upside could start a new bullish trend and aim for the next high at $170.
LTC price prediction
In the short term, Litecoin looks poised for growth. Since late August, it has consolidated around $63, recently breaking above the symmetrical triangle and reaching a high of $76 on October 20th. This was a breakout above the horizontal resistance line.
Still, the price returned to retest the support and fell to $68 on the next decline.
LTCUSD expected to rise further |Credit: Nikola Lazic/TradingView
If the initial rally indicates a new uptrend and the symmetrical triangle represents a correction phase, LTC’s next rally could be targeted at $90, with a potential peak of the rally at $100. be.
Previously, we considered the rally from September 9th to be a third wave, and the breakout confirmed this. The LTC reversal suggests that this may be part of correction wave 2.
A break above $71 would be a strong bullish signal. However, if LTC fails to break out, it may face further decline and could reach levels lower than those recorded 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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