As the crypto market continues its bullish course, Litecoin is not lagging behind and begins to show significant gains, which appear to be kicking off a huge rally. If you are interested in knowing the possible near future of LTC price, stay and review this post.
Litecoin Technical Analysis: A Major Rise Is Starting
Ranked # 7 among the largest cryptocurrencies by market capitalization, Litecoin has been alive for 9 years, achieving an ROI of 1,397% throughout its history.
Thanks to this return on investment, we can quickly identify that the long-term trend has remained bullish.
However, during the last 3 years this direction has been quite affected, with a sharp fall that pushed the price back by more than 90%.
Although there is no doubt that it has been a strong collapse, this behavior can be classified as a reversal of the previous trend, and it seems that it has already ended.
After reaching a support zone near $ 25 in March, Litecoin left strong bearish rejection. And after a significant recovery, last July it closed a bull engulfing candle, which is considered a strong positive signal. Adding up bullish probabilities and indicating that a new momentum is starting, which would carry the price towards a new all-time high.
The current moment is decisive, and will define whether LTC is ready to start a big bull run. Or, on the contrary, it will enter again into a descending triangle in which it has been locked for the last years.
Just the price is facing the immediate monthly resistance located at $ 68, while visiting the trend line that encloses the triangle, and the 18-month SMA that is still bearish.
It’s certainly a tense moment, and the odds are in favor of a bullish escape.
LTC USD weekly chart
In this time frame we observe the medium-term trend, quickly identified with the moving averages EMA of 8 and SMA of 18 weeks crossed to the upside.
The 200 week SMA was just reached and rejected in recent hours. If it is broken, it will mean an excellent bullish signal, converging with the break of the downtrend line.
At the moment the odds are in favor of the buyers, which would push the price of Litecoin up to $ 80 at the minimum. This if we only consider the levels of resistance visible in the weekly time frame.
LTC USD daily chart
Finally, the short-term trend is identified on the time frame with daily candles. It recently turned bullish again, despite the bears dragging the price lower for several days.
The 8-day EMA and 18-day SMA moving averages are crossed to the upside supporting this trend. The 200-day SMA is also currently bullish.
With the break of resistance at $ 63.38, the terrain on the daily chart is clear to $ 80. And although it will mean an excellent rise in Litecoin, this is only the beginning, if we put together the scenarios observed in the 3 time frames analyzed today.
What do you think? Do you agree that Litecoin is starting a big rally? Let us know your opinion in the comments!
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