Litecoin Looks Ready to Leap After Breaking Resistance

Key Takeaways

  • Litecoin is up greater than 46% prior to now three days.
  • Further upward strain might end in a retest of its 2021 excessive of $413.
  • Still, LTC should overcome one essential resistance barrier.

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Litecoin appears to be like primed for additional beneficial properties after breaking out of its present pattern. LTC has cleared main resistance however faces one other hurdle earlier than rising additional. 

Litecoin Enters New Uptrend

Litecoin is making an attempt to regain $300 as assist for the primary time in almost six months. 

The thirteenth-largest cryptocurrency by market cap has loved bullish value motion over the previous few days, gaining almost 100 factors in market worth. The sudden upswing allowed LTC to slice by way of a number of resistance limitations and construct a powerful foothold for costs to advance additional. 

40-year buying and selling veteran Peter Brandt believes that Litecoin is simply getting began. The breach of the Sep. 13 excessive at $238 might have marked the start of a brand new uptrend. Brandt maintains that additional shopping for strain might see LTC retest its 2021 excessive of $413. 

More importantly, the technical analyst affirmed {that a} goal of $1,000 is “fairly conservative” for Litecoin. He indicated that LTC may very well be forming a cup and deal with sample on the weekly chart, which is taken into account a bullish sign extending an uptrend. It initiatives that upon the break of the $420 all-time excessive, costs might rally by almost 1,800% in direction of $8,000.  

Such a bullish goal is set by measuring the gap between the underside of the cup and the sample’s breakout stage and increasing that distance upward from the breakout.

Source: TradingView

While $8,000 is a lofty goal for Litecoin, a technical retest of the 2021 excessive at $413 may very well be subsequent within the short-term. IntoTheBlock’s In/Out of the Money Around Price (IOMAP) mannequin exhibits that Litecoin faces just one hurdle forward. 

Roughly 42,600 addresses had beforehand bought over 240,000 LTC between $311 and $320. 

Such a essential provide barrier might decelerate the uptrend as merchants who’ve been underwater could attempt to break even on their lengthy positions. Still, a decisive shut above this resistance wall would possible end in an upswing in direction of $413, as Brandt identified. 

Litecoin Transaction Histroy
Source: IntoTheBlock

It is price noting that Litecoin should maintain above $240 for the bullish outlook to prevail. Any indicators of weak point at this value stage might encourage buyers to promote to keep away from losses. Based on transaction historical past, a spike in promoting strain that pushes LTC under $240 might translate right into a correction to $200 or decrease.

Disclosure: At the time of writing, the writer of this characteristic owned BTC and ETH. 

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