Litecoin (LTC) Shows Signs of Ending 4-Month Correction Phase

Key Takeaways

• Triple Zigzag correction may have been completed.
• Bullish divergence on RSI supports reversal.
• A breakout above $86.86 confirms impulsive recovery.
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Litecoin has reached a decisive technical juncture following a prolonged WXYXZ corrective structure since December.

The 4-hour and 1-hour charts show signs of a potential trend reversal, supported by Fibonacci levels, Elliott Wave symmetry, and bullish RSI divergences.

The market now awaits confirmation of a breakout to validate the emerging wave count and bullish reversal scenario.

LTC Price Analysis

The 4-hour chart presents a complete WXYXZ corrective structure following Litecoin’s five-wave impulse that peaked near $146 on Dec. 5.

After an extended multi-month correction, temporary support was found at $82, just slightly below the 0.618 Fibonacci retracement level.

This level held through most of the correction, being interacted with thrice.

This complex correction culminated with wave Z appearing to complete a final C wave, which may mark the end of the broader retracement phase.

The Relative Strength Index (RSI) has shown a notable bullish divergence since March 31, forming higher lows while price made new local lows.

This is often a reliable sign of bearish exhaustion and a forthcoming shift in trend direction.

Additionally, the descending trendline drawn from the February highs remains a critical barrier, aligning closely with the 0.618 Fibonacci level at $86.86.

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A break above this confluence would likely validate the assumption that wave Z has ended and Litecoin is beginning a new five-wave impulsive advance.

Should bullish momentum sustain, the next significant resistance lies at the 0.5 Fib retracement around $98.15.

LTC Price Prediction

Zooming into the 1-hour chart, we see a completed five-wave bearish impulse into the end of wave Z, followed by a sharp reaction that could signify the first wave (i) of a new bullish sequence.

The price then pulled back into what appears to be wave (ii), potentially forming a higher low at $81. This setup suggests that wave (iii) is now underway or imminent.

The RSI also supports this outlook, forming a bullish divergence on March 31 — another key reversal signal.

The market has since rebounded and is attempting to reclaim the descending trendline after forming a near double-bottom.

If wave (iii) confirms, we anticipate acceleration above the 0.618 Fibonacci level at $86.86, which would also validate the breakout.

Wave (iii) ‘s extension targets lie at $92.00 (1.272 Fib) and $98.15 (1.618 Fib), with wave (iv) likely retracing modestly before wave (v) completes the sequence around $100.

In the bearish alternate, failure to hold $81 support and a break below $78 would suggest that wave Z is incomplete and that further downside toward $70.79 (0.786 Fib) is possible.

Key Levels to Watch

• Immediate Resistance: $86.86 (0.618 Fibonacci retracement).
• Major Resistance: $98.15 (0.5 Fibonacci retracement, wave (iii) target).
• Short-Term Target: $92.00 (1.272 Fibonacci extension of wave (i)).
• Immediate Support: $81.00 (wave (ii) potential higher low).
• Critical Support: $78.00 (wave Z low).
• Invalidation Zone: Below $70.79 (0.786 Fibonacci retracement).