Key Takeaways
Litecoin (LTC) has shown a strong recovery after completing a corrective phase, establishing a robust support zone between $40 and $70.
Recent breakout movements suggest the potential start of a larger bullish cycle, with the price reaching $99 on Nov. 16, hinting at further upside.
The daily chart for LTC highlights a significant recovery following its recent correction.
After forming a strong horizontal support zone between $40 and $70 during the prolonged accumulation phase, the price has now broken above key resistance levels, signaling the end of higher-degree wave 2.
This breakout aligns with the resumption of a new impulsive cycle, supported by the higher Fibonacci retracement zones.
LTC broke above the descending trendline, reaching a high of $99 on Nov. 16.
Although this is still a lower high than March’s, it could be an early sign of the larger bull phase continuing. If this is true, LTC is now on the path to $170.
The RSI has shifted into bullish territory but is not yet overbought, indicating further upside potential in the short term.
The 4-hour chart shows a continuation of its bullish momentum following the completion of a corrective wave (ii) near $63 on Oct. 2.
The breakout from the consolidation zone led to a sharp rally, pushing the price above the previous resistance levels to peak at $99. This marked the completion of wave (iii), as it reached the 1.618 Fib extensions level.
LTC is consolidating in what appears to be wave (iv), suggesting a temporary pause before the next upward leg.
Although we saw the price jump over 10% today, it could still be part of the developing sideways move, resulting in one more leg down before completing its wave (iv).
Key Fibonacci retracement levels are being respected, guiding our next targets. The strongest sign of the bullish momentum continuing will be surpassing the near $100 high, in which case a higher one will be expected to be around $115.