Key Takeaways
Litecoin (LTC) is currently consolidating within a symmetrical triangle pattern, with the price attempting to break above descending triangle resistance.
The market structure indicates the potential for an impulsive breakout, though short-term retracements may occur before a decisive trend emerges.
The daily chart of Litecoin shows a well-defined symmetrical triangle pattern formed after LTC reached a high of $146.85 on Dec. 5.
The price structure suggests an ongoing ABCDE correction. A 41% downfall happened within Wave (a), leading to a Wave (b) high of $140 on Jan. 27.
Wave (e) is likely forming near the ascending trendline, while LTC trades around $128, struggling with resistance at the 0.236 Fibonacci retracement ($127.52).
The Fibonacci retracement levels highlight key support zones, with the 0.382 level at $115.56 and the 0.5 retracement at $105.90 as major demand zones.
A bullish breakout from this triangle could confirm a new impulsive wave, while a rejection at resistance would lead to further consolidation before attempting higher levels.
From an Elliott Wave perspective, LTC completed a five-wave structure to the upside and is now undergoing a corrective phase.
The daily Relative Strength Index (RSI) remains slightly overbought, indicating room for further price movement.
The one-hour chart provides a closer view of Litecoin’s potential breakout trajectory. In the short term, LTC is retesting its descending resistance line, which is currently aligned with wave (d).
If rejected, price action could revisit the $120-$122 zone, forming the final wave (e) before an impulsive breakout.
In a bullish scenario, breaking above $130-$135 with volume confirmation would push LTC toward $146.85, the previous high. Further extensions could target $160+, supported by Fibonacci expansion levels.
However, a bearish scenario emerges if LTC fails to hold the above key supports. A drop below $115.56 (0.382 Fib) would indicate weakness, potentially leading to a deeper retracement toward $105.90 or $96.23.
Overall, the symmetrical triangle favors a breakout soon, with LTC likely rallying if it sustains above the 0.236 Fibonacci level.
LTC could enter a new bullish phase if momentum builds, targeting higher Fibonacci extensions. Since its recent high, a symmetrical triangle was formed, with a breakout soon expected.