Litecoin, unlike every other cryptocurrency, hasn’t been dumping. Instead, it has been on a rally since December 2018, causing the price to surge by a massive 170%.
The price and the coin’s technicals indicate a more bullish scenario for Litecoin in the future, owing to the formation of an ascending triangle.
As seen in the chart above, the price at press time hadn’t crossed the higher high [$61.25] formed on 16 March, 2019. Although the price did hit the $61.25 level multiple times, it did cross it, forming the top of the triangle. The price, however, has been forming higher lows since 4 March, 2019, creating a perfect ascending triangle pattern seen on the charts.
The Volume has been continuously declining across the pattern, giving it more credibility. Additionally, the Relative Strength Index [RSI] is close to hitting the resistance at 48. The assumption here is that the price would hit the strong resistance and bounce off, thus creating an opportunity for the rally.
The Fibonacci Retracement showed a 50% retracement for the previous rallies. Assuming the same, if Litecoin decides to dump, before going on another rally, the retracement could happen at $57, which also happens to be a strong support/resistance that LTC has supported since 2018.
Since the ascending triangle patterns are bullish in nature, a breakout to the upside could be expected. Although unlikely, if the price drops due to an unforeseeable event, it could retrace to a low of $57.
Due to its rally over the last couple of months, it is speculated that Litecoin bottomed in December and that the bull rally has begun. Since Litecoin’s halving is just around the corner [August 06, 2019], the community speculates that this could be a key driver of the price.
The direction of any pattern’s breakout is uncertain and it can only be known after it actually occurs. Thus, it is better to be prepared for both outcomes. If the price dumps, the keys levels to be looking out for are $57.03, $52.04 and $39.65. However, if the price decides to go on a rally, the key range to look out for is between $68.87 and $62.84.
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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.