Litecoin (LTC) Gains 10%, Struggles to Recover Recent Highs but Momentum Is Strong

Key Takeaways

• Strong Base Established: Horizontal support between $53-$70 sets the stage.
• Breakout Momentum Confirmed: Surpassing $87 marks wave 3’s bullish start.
• Room for Growth: RSI supports further gains without overbought conditions.

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.

LTC Price Analysis

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.

Key Observations

1. Horizontal Support Established: The accumulation phase near $53-$70 provided a robust base for the next uptrend.
2. Breakout Confirmation: The breakout from the descending resistance at $87 signals the start of wave 3.
3. Neutral RSI: Momentum supports continued gains, with room for upward movement.

Litecoin Price Prediction

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. 

Key Levels to Watch

• Support Levels:
  • $81: (1 Fibonacci extension).
  • $77.41: (0.382 Fibonacci retracement).
  • $70: (horizontal support zone’s upper level).
• Resistance Levels:
  • $100 (previous local high).
  • $115 (wave (v) midterm target).

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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