Litecoin (LTC) price is making its fourth attempt to break out of a key resistance area. An eventual break seems likely, as the resistors weaken each time they are touched. Can LTC price move towards $130 after successfully testing $100?
Aside from the price action, the wave count and the RSI reading are both bullish. This increases the probability that the breakout will succeed.
The weekly timeframe technical analysis for LTC mostly gives a bullish outlook. There are numerous reasons for this.
First, LTC price has been trading inside an ascending triangle since the end of May 2022. The ascending triangle is considered a bullish pattern. As a result, a breakout from this pattern is the most likely future price scenario.
Subsequently, LTC price made several attempts to break out of the $100 resistance area. This makes a breakout more likely, as the resistors weaken each time they are touched. It is currently breaking the $100 resistance. However, he still needs to hold it and turn it into support.
Finally, the weekly RSI is bullish. With the RSI as a momentum indicator, traders can identify whether a market is overbought or oversold and decide whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is up, the bulls have an advantage. But if the reading is below 50, the opposite is true. The indicator is above 50 and rising. Moreover, it has formed a hidden bullish divergence (green line).
This is a kind of bullish continuation pattern where a price increase is accompanied by a decrease in momentum. Usually, it leads to the continuation of the previous trend, which in this case is bullish.
LTC Price Forecast: Number of Waves Indicates Price Will Reach New Year Highs
A closer look at the daily timeframe analysis reveals a stable bullish outlook, mostly due to the wave count.
Technical analysts use Elliott Wave theory as a tool to identify recurring long-term price patterns and investor psychology that help them determine the direction of a trend.
The most likely wave count shows that LTC price is in the third wave (white) of a five-wave increase. The third wave is usually the largest and sharpest of the five waves. As a result, if the count is correct, the rate of increase is likely to accelerate soon.
The shape of the corrective second wave (highlighted) is in perfect harmony with the count. This is particularly evident in the 1:1 length of the A:C (black) waves.
If the count is correct, LTC price will explode soon. However, it will head towards the next resistance level at $130.
This rise altcoin Despite the price prediction, a break below the second low wave (red line) at $71 will mean that the trend is bearish. As this drop will invalidate the bullish prediction, it could lead to a dip to $50.