- Litecoin (LTC) has shown promising signs of growth, breaking out from key resistance levels and sustaining support above $70, with analysts predicting a potential rise above $100.
- Technical indicators like the Relative Strength Index (RSI) and a hidden bullish divergence on the daily chart support the ongoing positive trend, though a drop below $70 could reverse the gains.
Litecoin’s Bullish Momentum Gains Traction
Litecoin (LTC) has been experiencing a notable increase in price since October 19, breaking free from both long- and short-term descending resistance trend lines. The recent price movements have sparked discussions among analysts and traders about the potential for Litecoin to exceed the $100 threshold.
Technical Analysis: A Breakout on the Horizon
The technical analysis on a weekly time frame for LTC reveals that after a period of decline since June, the price regained momentum, breaching a significant descending resistance trend line. This breakout was initially invalidated by a drop, but Litecoin’s price found solid support at the $60 area, confirming its significance as a long-term support level.
The LTC price has been on an upward trajectory since then, further bolstered in October. The recent actions suggest that Litecoin is in the process of re-validating the trend line as support, indicating a potential continuation of its upward movement. The Relative Strength Index (RSI) on the weekly chart, a key momentum indicator, is rising but remains below 50, suggesting that the market trend for LTC is yet to be firmly established.
Analysts’ Perspectives and Predictions
Cryptocurrency traders and analysts are predominantly bullish on Litecoin’s future. Analysts like SantoXBT predict that LTC could reach $150-$200 by the end of the year, while Shan Belew emphasizes the network’s undervaluation and its potential for significant price increases in relation to its network value. ChrisOnCrypto also mirrors this sentiment, citing LTC’s strong fundamentals as a basis for its potential explosive growth by the end of January.
The Road Ahead for Litecoin
On the daily time frame, the situation looks promising for LTC. The currency has successfully broken out from a short-term descending resistance trend line and maintained its position above the crucial $70 horizontal area. Additionally, the daily RSI has shown a hidden bullish divergence, further legitimizing the breakout and hinting at a trend continuation. If LTC maintains its upward momentum, it could see a 30% increase to reach the 0.618 Fibonacci retracement resistance level at $93.
However, it is crucial to note that a decline below the $70 support level could trigger a significant drop to the next support at $60, potentially reversing the current bullish trend.
In summary, while the current technical indicators and expert analyses lean towards a bullish future for Litecoin, maintaining key support levels will be critical in determining whether LTC can surpass the anticipated $100 mark.