- Litecoin (LTC) trades inside a long-term symmetrical triangle pattern.
- Litecoin may have completed a long-term corrective structure.
- Can Litecoin break out from this triangle, and what’s next if it does?
Litecoin has not increased much in the current cycle. LTC increased by only 262% from bottom to top, culminating in a high of $147.
However, its 6-year pattern is still intact, and a breakout above it could be the catalyst needed to provide volatility.
There was some positive Litecoin news this week, as Polymarket shows that the chances of an ETF being approved in 2025 jumped to 77%.
With that in mind, let’s analyze the Litecoin price action to ascertain if the bottom is in place.
Litecoin Price Analysis
The weekly time frame price analysis shows that Litecoin has traded inside a massive symmetrical triangle for over six years.
The wave count supports this structure, showing a completed A-B-C-D-E structure (red).
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If the count is correct, Litecoin’s price has started an upward movement that will cause a breakout from the pattern.
If that happens, the closest resistance levels will be $240 and $300, respectively.
Nevertheless, technical indicators do not confirm this movement yet. The Relative Strength Index (RSI) is 50, while the Moving Average Convergence/Divergence (MACD) is 0.
Let’s look at a lower time frame and see if the correction has ended.
LTC Price Bounces
The daily time frame chart gives mixed Litecoin readings. In May, LTC broke out from the $95 horizontal resistance area.
However, it failed to sustain the increase and fell below the resistance shortly afterward, creating a deviation.
On the bullish side, Litecoin bounced at the $83 horizontal support area, sweeping the previous June lows (green icon).
Additionally, it trades inside a descending parallel channel, which usually means the decline is corrective.
Furthermore, the LTC price has completed a five-wave upward movement.
As a result, the readings do not confirm the bottom is in but lean slightly bullish.
So, a breakout above $95 and the triangle’s resistance line is more likely to occur.
Bottom Formation Ready
The Litecoin price trades inside a long-term bullish pattern, from which a breakout is likely.
While it is unclear if the bottom is in place, the short-term readings lean bullish.
A close above $95 will be the first step in confirming the breakout.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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