Can Litecoin Break Out Above Resistance? | Credit: Hameem Sarwar
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Key Takeaways
Litecoin (LTC) has not fallen below its December 2023 lows.
The Litecoin price follows a descending resistance trend line.
Can Litecoin break out and confirm the end of its correction?
Litecoin struggled for most of 2024 but started showing promise in November, breaking out from several long-term resistances and reaching the highest price in nearly three years.
The rally however was short-lived and LTC has tumbled 34% since the high. A silver lining during the decline is that Litecoin created a higher low and is reclaiming the $100 level.
If Litecoin continues to increase, it could break out from its diagonal resistance and confirm the end of the correction. Let’s examine the charts and see how likely that is.
Litecoin created five successive bullish weekly candlesticks starting in November 2024. During the ascent, the price broke out from several key resistance levels.
Firstly, it moved above a descending resistance trend line existing for 518 days and then moved above the $110 horizontal resistance area. In December, Litecoin reached a new yearly high price of $147.
However, the LTC price has fallen since, putting the previous breakout in doubt. Litecoin decreased below the $110 horizontal area but managed to bounce at the resistance trend line (white icons), preventing the breakout’s invalidation.
Technical indicators are also approaching key levels. The Relative Strength Index (RSI) has nearly reached 50 from above, and the Moving Average Convergence/Divergence (MACD) almost made a bearish cross (black circle). These signals could accelerate the downtrend if confirmed.
So, the Litecoin trend is still bullish according to the weekly time frame, but a continued downward movement below $95 will invalidate it.
Will Litecoin Breakout?
Litecoin’s wave count suggests the trend is bullish, and the price is correcting in response to its previous ascent. The wave count shows a complete fourth wave pullback (white icon) on Dec. 20.
The LTC price created a bullish candlestick the same day, validating the resistance of an ascending parallel channel connecting waves one and two.
The Jan. 13, 2025 decline created a higher low relative to the price on Dec. 20. This confirms the fourth wave pullback and suggests that the Litecoin trend is strong since both Bitcoin (BTC) and Ethereum (ETH) fell below their December 2023 lows.
Finally, the daily MACD has generated a bullish divergence, indicating that an upward movement will commence.
If Litecoin breaks out from its descending resistance trend line, it will confirm that wave five has started. In that case, the next resistance will be $184, created by the 1.61 external Fibonacci retracement of wave four (black).
Litecoin Price to $180
Despite an ongoing market correction, Litecoin’s price showed resilience by creating a higher low relative to Dec. 16.
If the price breaks out from its descending resistance trend line, Litecoin can increase by 86% and reach a high of $184.
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.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
