Litecoin (LTC) Fails Breakout, Reverts to Critical $62 Support Level

Key Takeaways

• Litecoin held above $60, setting a strong support base.
• A descending triangle breakout could lead to a bullish phase.
• The upside target is $170; the downside risk is revisiting the August lows.

Litecoin’s (LTC) price action over the past year has seen stability, a surge to new highs, and subsequent corrections, setting up a potentially pivotal moment in its trend.

This analysis explores the key movements of LTC, including support levels, wave patterns, and potential targets, with insights on the next significant moves for this cryptocurrency.

Litecoin Price Analysis

Between September 2023 and February 2024, Litecoin remained stable above $60, establishing a horizontal support zone and setting the stage for a potential upward movement.

By April 2, LTC surged to $113 before facing a sharp decline.

This downward movement tested the upper boundary of the $70 support zone on April 13, prompting a short-lived recovery to $90 by May 21.

However, a subsequent drop pulled the price below its mid-April levels.

Read more: Litecoin Price Prediction 2024: LTC Price Analysis

Considering the previous rise as a five-wave impulse, the downward movement from April 1 is the final leg of a corrective phase. On Aug. 5, the price was retraced to the 0.786 Fibonacci level, a typical correction endpoint.

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

The formation of a descending triangle suggests that a breakout to the upside could signal the beginning of a new bullish phase, with the potential for LTC to target $170 as its next high.

Litecoin Price Prediction

In the short term, Litecoin may be positioned for growth. Since late August, it has consolidated around $63 and recently broke out above a symmetrical triangle.

It reached a high of $71, the horizontal zone’s resistance, and was rejected, but it is currently testing ascending support.

If the earlier rise marks the start of a new uptrend and the forming symmetrical triangle represents a corrective phase, the next upward movement could see LTC aiming for $90 as an interim target, with $100 as the potential peak of this rally.

Previously, we anticipated the rise from Sept. 9 was its wave 3, and a successful breakout would have confirmed. LTC has reverted, so we count this as part of its corrective wave 2. 

A move beyond the $71 level would provide a strong signal for the beginning of a bullish phase.

However, if LTC fails to break through, it could face another downturn and potentially reach lower levels than those seen on Aug. 5.