Monday, January 30, 2023

Litecoin eyes $100 after ‘rare’ LTC price breakout

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Litecoin (LTC) may rise one other 20% amid a uncommon pattern reversal breakout that has already resulted in LTC outperforming most crypto belongings in current days.

LTC’s not-so-bearish symmetrical triangle

LTC’s price broke out of what earlier gave the impression to be a bearish symmetrical triangle.

Symmetrical triangles are pattern continuation patterns, that means breaking out of their vary usually prompts the price to maneuver within the course of their earlier pattern. 

Litecoin shaped a symmetrical triangle sample between Might and November after dropping 70% to just about $40 within the prior buying and selling classes. Ideally, the LTC/USD pair may have resolved the sample by breaking under its decrease trendline.

However as a substitute, it broke above the higher trendline in early November, as proven under. In line with Robert D. Edwards and John Magee, the authors of Technical Evaluation of Inventory Traits, the breakout transfer is uncommon, given solely 25% of symmetrical triangle breakouts have traditionally resulted in pattern reversals.

LTC/USD three-day price chart. Supply: TradingView

Litecoin adopted up with its symmetrical triangle reversal transfer decisively and now eyes a run-up towards $100, or one other 20% by December 2022.

This upside goal is measured after calculating the gap between the triangle’s higher and decrease trendline and including the output to the breakout level (round $58 in Litecoin’s case).

Why is Litecoin price up?

Litecoin’s symmetrical triangle breakout transfer began in late October. It coincided with MoneyGram’s announcement that it could allow customers to buy, retailer and use LTC alongside Bitcoin (BTC) and Ether (ETH) for funds.

LTC/USD three-day price chart. Supply: TradingView

The LTC breakout misplaced momentum on account of FTX’s collapse within the first week of November and its unfavorable influence on the broader crypto market. However Litecoin resumed its upward pattern amid speculations about its reward halving in the summertime of 2023.

Associated: Litecoin hits fresh 2022 high versus Bitcoin — But will LTC price ‘halve’ before the halving?

“Litecoin tends to rally within the months main as much as the halving,” noted market analyst The Digital Pattern in a SeekingAlpha op-ed, including:

“Then, the price tends to stabilize earlier than coming into a lengthier and extra substantial bull market. Then, round midway via the cycle, Litecoin enters a bearish/distribution section like Bitcoin.”

LTC/USD price efficiency earlier than and after halving. Supply: TradingView/The Digital Pattern

Litecoin’s price could reach $180 by July if the halving fractal performs out as supposed, as Cointelegraph beforehand reported.

The bearish take

Conversely, Litecoin can see a short-term correction, as its three-day relative power index (RSI) is popping “overbought.” The set off for the draw back transfer might be the RSI crossing above 70 from its present studying of 68, as proven under.

LTC/USD three-day price chart. Supply: TradingView

LTC’s price draw back goal involves be at round $40 within the occasion of a correction pattern, down about 50% from present price ranges.

This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a choice.