Litecoin (LTC) Nears Key Resistance, Major Breakout Possible

Key Takeaways

• Litecoin held steady above $60 since September.
• April’s decline tested the $70 support zone.
• A potential breakout could target $170 next.

Since the August low, the Litecoin (LTC) price movement has navigated key support and resistance zones, signaling possible shifts.

After a recovery, it started moving sideways, forming a symmetrical triangle below the horizontal resistance.

After a recent breakout from both major resistances, a retest was conducted that will point out the future outlook.

Litecoin Price Analysis

From September 2023 to February 2024, Litecoin maintained stability above $60, creating a horizontal support level and setting up potential upward momentum.

By April 2, LTC rallied to $113 before encountering a significant pullback.

This decline tested the upper edge of the $70 support zone on April 13, leading to a brief recovery to $90 by May 21. However, a subsequent dip pushed the price below its mid-April levels.

If we view the previous increase as a five-wave impulse, the decline since April 1 could be the final leg of a corrective phase. By Aug. 5, the price retraced to the 0.786 Fibonacci level, often marking the end of such corrections.

According to Elliott Wave Theory, corrective waves can retrace up to 100% without altering the broader bullish outlook.

A descending triangle formation indicates that a breakout to the upside might initiate a new bullish trend, potentially targeting $170 as the next high.

LTC Price Prediction

In the short term, Litecoin appears primed for growth. Since late August, it has consolidated near $63 and recently broke above a symmetrical triangle, reaching a high of $76 on Oct. 20. This was a breakout above the horizontal resistance.

Still, the price went back to retest it for support, falling to $68 on the next downturn. 

If the earlier rise signals a new uptrend and the symmetrical triangle represents a corrective phase, LTC’s next upward move could see it target $90, with $100 as the rally’s potential peak.

Previously, we considered the rise from Sept. 9 as wave 3, with a breakout confirming this. LTC’s reversion suggests this could be part of corrective wave 2.

A move above $71 would provide a strong signal for a bullish phase. However, if LTC fails to break through, it may face another downturn, potentially reaching lower levels than those recorded on August 5.