Key Takeaways
- Litecoin (LTC) trades inside a long-term symmetrical triangle.
- The LTC price is attempting to break out from a short-term channel.
- Litecoin’s charts suggest the bottom is in, and a significant rally awaits.
The Litecoin price bounced on April 7, creating a higher low on June 22. The long- and short-term Litecoin charts are bullish, signaling the start of a significant rally.
Let’s examine the charts to determine when the move will occur and what the target for this breakout is.
Litecoin’s Technical Analysis
Litecoin’s technical analysis shows that the LTC price completed a five-wave upward movement (green) and a W-X-Y correction (red).
The correction was contained inside a descending parallel channel, from which Litecoin attempts to break out.
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So, the wave count method suggests the trend is bullish, and downward movements are corrective.
Fibonacci levels are in line analysis, showing that Litecoin bounced (green icon) between the 0.618-0.786 Fibonacci retracement support levels.
A breakout from the channel will confirm the bullish trend reversal, taking the Litecoin price toward $135.
Technical indicators confirm this bullish Litecoin analysis. The Relative Strength Index (RSI) broke out from a resistance trend line, almost above 50.
The Moving Average Convergence/Divergence (MACD) made a bullish cross (black circle) and is almost positive.
Therefore, the Litecoin chart gives a bullish price forecast, signaling an imminent breakout.
Litecoin’s Bullish Bounce
The short-term hourly chart confirms that the trend reversal has started.
Litecoin’s bounce is a five-wave upward movement where wave four was a symmetrical triangle.
This is a decisive sign that the bullish trend reversal is underway and will lead to new highs.
However, a short-term correction could transpire before the move resumes, supported by the bearish divergences in the RSI and MACD (orange).
Therefore, the LTC price could complete an A-B-C correction and return to $81-$82. Afterward, the long-term upward movement could begin.
$80 Before $100
The Litecoin technical analysis shows bullish signs in multiple time frames.
While LTC could fall to $81-$82, a breakout from the long-term channel is impending.
Once that occurs, Litecoin could increase to at least $135.
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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