Litecoin price is making its fourth attempt to break out of an important resistance area. As resistance weakens each time it is touched, a breakout followed by a move to $130 looks very likely.
The wave chart and the RSI readings also provide bullish signals, which increases the chances of a successful LTC breakout.
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Is Litecoin ready to continue the rally
Technical analysis of the weekly timeframe gives a predominantly bullish outlook. There are many reasons for this.
First, LTC has been trading inside an ascending triangle since the end of May 2022. The ascending triangle is considered a bullish pattern, so a break out of it is the most likely scenario for future price movement.
Further, the price of the asset made several attempts to break out of the $100 resistance area. This makes a breakout more likely as the resistance weakens each time it is touched. Currently, Litecoin has broken through the $100 level. However, he still needs to hold on and turn it into support.
Source: TradingView
Finally, the weekly RSI gives bullish signals. The indicator is above 50 and growing. Moreover, it formed a hidden bullish divergence (marked in green on the graph)which often leads to the continuation of the price trend.
Wave calculation supports the possibility of LTC price growth
Analysis of the daily timeframe confirms the possibility of further growth, mainly due to the wave calculation. He suggests that the price of LTC is in the third wave of five-wave growth. (it is marked in white on the graph). The third wave is usually the largest and sharpest of the five waves.
Corrective waveform two matches the calculation perfectly. This is especially noticeable in the length of 1:1 A:C waves. (they are marked in black on the graph).
Source: TradingView
If the calculation is correct, Litecoin will accelerate its growth rate and head towards the next resistance level at $130.
However, falling below the low of the second wave (on the graph it is marked with a red line) at $71 would mean a change in trend to bearish. In this case, the price of LTC can sink to $50.
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2023-06-30 13:20:02
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