Litecoin (LTC) Price Climbs 60% — Poised for New Yearly High

Key Takeaways

• Litecoin (LTC) is breaking out from a parallel channel.
• The price trades less than 10% below its yearly high.
• Can Litecoin sustain its momentum and break out?

Litecoin has shown immense strength since the liquidation event on Feb. 3, regaining all of its losses and nearly reaching a new yearly high on Feb. 19.

The LTC price almost broke out from a long-term descending parallel channel, which would confirm the end of the correction.

Since the price has yet to break out, the main question is: Can Litecoin sustain its momentum and reach new highs, or is this simply a relief rally? Let’s find out.

Litecoin’s Breakout Attempt

The daily time frame chart shows that Litecoin has traded inside a descending parallel channel since its cycle high of $147.06 on Dec. 5, 2024.

During this period, the resistance and support trend lines (red and green icons) have been validated several times.

Channel support touches have created long lower wicks (green icons) a sign of buying pressure.

The recovery since the final touch has been especially impressive since Litecoin moved above the channel’s midline almost immediately.

After a high of $140 on Feb. 19, which confirmed both the channel’s resistance trend line and the $140 resistance area, the Litecoin price has fallen slightly today.

However, it still remains on track for an eventual breakout.

Technical indicators are also bullish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are both increasing and above their bullish thresholds at 50 and 0, respectively.

The daily time frame chart suggests a breakout is likely. Let’s look at the wave count to see where this can lead.

LTC Breakout Incoming

The Litecoin wave count gives a bullish prediction, suggesting a breakout will happen soon. The count suggests the LTC price is in wave C of an A-B-C structure (green) that began in June 2022.

If the count is accurate, LTC is in the final portion of wave C. The sub-wave count is in orange, illustrating that LTC is in the fifth and final sub-wave.

The first target for the top of this increase is at $170.66, created by giving wave C 1.61 times the length of wave A.

While the short-term count predicts a breakout, the long-term one is not as bullish. Rather, the count shows the LTC price correcting inside a long-term symmetrical triangle. 

The proposed short-term breakout is just wave D in a lengthy correction. So, after the LTC price reaches the $170 target, it could fall toward the triangle’s support trend line at $80, completing wave E.

While an eventual breakout from the triangle is still likely, the LTC price could continue consolidating before eventually moving outside of the pattern.

Litecoin Yearly High

The Litecoin price is attempting to break out from a long-term descending parallel channel.

The Litecoin price action and wave count indicate it will be successful, reaching a new yearly high and possibly moving to $170.