Litecoin Breaks Out of Symmetrical Triangle, Faces Rejection at Prior High
LTC breaks out from its symmetrical triangle, but the rise is halted at its prior high resistance. Can the uptrend continue?
Key Takeaways
- Breakout from the descending triangle could target $170.
- Litecoin faces strong resistance above $69.
- Short-term growth potential aims for $90, possibly $100.
Between September 2023 and February 2024, the Litecoin (LTC) price remained stable above $60, establishing a support zone and setting up a potential upward move.
After reaching $113 in April, LTC experienced significant volatility, which led to price corrections and the formation of potential bullish patterns.
Litecoin Price Analysis
Between September 2023 and February 2024, Litecoin maintained stability above $60, forming a horizontal support zone and priming for an upward movement.
By April 2, LTC climbed to $113 before encountering a steep decline.
This decline tested the upper boundary of the $70 support zone on April 13, leading to a brief recovery to $90 by May 21.
However, a subsequent downturn pulled the price lower than its mid-April levels.
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Considering the previous rise as a five-wave impulse, the downward movement from April 1 appears to be the final wave of a corrective phase. On Aug. 5, the price was retraced to the 0.786 Fibonacci level, a common correction endpoint.
According to Elliott Wave Theory, corrective waves can retrace up to 100% without altering the bullish outlook. Additionally, the formation of a descending triangle suggests that a breakout to the upside would indicate the beginning of a new bull phase, with the potential for LTC to target $170 as its next high.
Litecoin Price Prediction
In the short term, Litecoin could position itself for growth.
It has consolidated around $63 since late August and finally broke out above the symmetrical triangle.
If the earlier rise marks the start of a new uptrend and the forming symmetrical triangle represents a corrective phase, the next upward movement could see LTC aiming for $90 as an interim target, with $100 as the potential peak of this advance.
The rise from Sept. 9, which led to a breakout, could be the next upward advancement. However, it has been halted at its prior high resistance of $69. If it continues moving up and surpasses this area, we will receive a strong signal of the upcoming bull phase.
However, if it gets rejected, LTC could face yet another downturn, leading to lower values than on Aug. 5.
Read more: Litecoin Price Prediction 2024
