Litecoin (LTC) Price Targets $140 After Reclaiming 880-Day Support

Key Takeaways

• Litecoin (LTC) reclaimed a long-term ascending support trend line.
• The LTC price moved above the $77 horizontal resistance area.
• Can Litecoin reach a new yearly high, and what’s next if it does?

The Litecoin price has increased by 64% since its Aug. 5 bottom. The upward movement accelerated today, on Nov. 14, triggering a 12% price increase.

More importantly, LTC reclaimed a long-term ascending support trend line from which it had previously broken down. What implications does this have for future trends?

Let’s find out.

Litecoin Reclaims Support

The weekly time frame LTC chart shows that the price increased alongside an ascending support trend line since June. The upward movement led to a high of $115 in July.

Afterward, Litecoin created a lower high in March, triggering a downward movement that caused a breakdown from the ascending support trend line.

After the breakdown, Litecoin fell to a low of $49.90 before bouncing, validating the $50 horizontal area as support. The price has increased since. LTC reclaimed the ascending support trend line and the $80 horizontal area this week.

This means that the previous breakdown is just a deviation. These deviations often lead to significant movements in the other direction.

If this is the case, the next resistance will be at $100, created by a descending resistance trend line (dashed).

Technical indicators give bullish signs, supporting the upward movement. The Relative Strength Index (RSI) is above 50 and increasing, while the Moving Average Convergence/Divergence (MACD) has made a bullish cross and is moving upwards.

Therefore, the weekly time frame price action and indicator readings suggest that LTC will reach the $100 resistance area.

Bullish Wave Count

The weekly time frame wave count aligns with the price action and indicator readings. The most likely count suggests that the LTC price has started a five-wave upward movement (white) after completing an A-B-C correction (black).

It is still unclear if this is part of a larger A-B-C structure or a new five-wave upward movement.

In either case, a similar length increase as the previous one is expected, which would lead to a target of $143.50.

Afterward, the reaction, once it gets there, will determine the long-term trend’s direction. Since the Litecoin price is likely completing wave one, it could drop to complete wave two soon, validating the long-term support trend line.

Litecoin Above $100

The Litecoin price action and indicator readings from the weekly time frame are both bullish.

Reclaiming the long-term ascending support trend line suggests the price will continue increasing. The wave count gives a target of $144.

About the Author

Valdrin Tahiri

Valdrin discovered cryptocurrencies while getting his MSc in Financial Markets from the Barcelona School of Economics in 2017. He has been an avid investor and trader since. Valdrin has written for several cryptocurrency media companies such as BeInCrypto and CoinGape.

See more

[email protected]