Litecoin overcame the $100 mark: should we expect the LTC rally to continue?
Date: 2023-07-01 Author: Karina Ziganova Categories: BLOCKCHAIN
The price of Litecoin is making its fourth attempt to break out of an important area of resistance. As the resistance weakens every time it is touched, a breakout followed by a move towards $130 looks highly likely.
The wavechart and RSI readings also give bullish signals, which increases the likelihood of a successful LTC breakout.
Is Litecoin ready to continue the rally?
Technical analysis of the weekly timeframe gives a predominantly bullish forecast. There are many reasons for this.
First, LTC has been trading inside an ascending triangle since the end of May 2022. An ascending triangle is considered a bullish pattern, so a breakout from it is the most likely scenario for future price movement.
Further, the price of the asset made several attempts to break out of the $100 resistance area. This makes a breakout more likely as resistance weakens every time it is touched. Currently, Litecoin has broken through the $100 level. However, he still needs to hold on and turn it into support.
Finally, the weekly RSI gives bullish signals. The indicator is above 50 and rising. Moreover, it has formed a hidden bullish divergence (it is marked in green on the chart), which often leads to a continuation of the price trend.
Wave calculation supports the possibility of LTC price growth
Analysis of the daily timeframe confirms the possibility of further growth, mainly due to the wave calculation. It assumes that the price of LTC is in the third wave of five-wave growth (it is marked in white on the chart). The third wave is usually the largest and sharpest of the five waves.
The shape of the corrective wave two fits the calculation perfectly. This is especially noticeable in the 1:1 length of the A:C waves (they are marked in black on the graph).
If the calculation is correct, Litecoin will accelerate the pace of growth and head to the next resistance level at around $130.
However, a fall below the low of the second wave (it is marked with a red line on the chart) at $71 will mean a change in trend to bearish. In this case, the price of LTC may drop to $50.
