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Litecoin bulls attempting 12% rally in a breakout move

litecoin, Litecoin bulls attempting 12% rally in a breakout move
Image by Ryan McGuire from Pixabay 

Jaipur (CoinChapter.com) — Litecoin is trading almost 60% below its recent all-time of $414 clocked on May 10. Profits takers catalyzed a massive selloff in conjunction with the crypto market crash to lead the LTC/USD pair down to $168. But the bearish scenario around bitcoin’s light cousin is about to reverse.

Low volatility, ascending triangle formation

After the cryptocurrency market crash on May 19, Litecoin has entered a sideways trading phase. Its been 20 days since the LTC/USD trading pair had a significant capital allotment. Volatility has been low, and instant profit booking moves followed recoveries.

But this sustained range trading momentum after the freefall has led to an ascending triangle pattern. Also known as a bullish wedge. Triangle formations happen when asset prices drop from their all-time highs and enter periods of prolonged non-volatile movement. Eventually, investors galvanize markets resulting in prices becoming positively/negatively volatile.

In the current Litecoin market scenario, the former is true. On the daily LTC/USD chart, the ascending triangle formation shows that bears have become exhausted, and bulls have taken over the reins. After bottoming at $142, buyers flocked to pump litecoin prices to $172.

litecoin, Litecoin bulls attempting 12% rally in a breakout move
Bullish Wedge Formation On Daily LTC/USD Chart, Source: LTCUSD on TradingView.com

RSI (Relative Strength Indicator) and MACD (Moving Average Convergence Divergence) indicators also portray oversold conditions and a bullish reversal.

Read More: Litecoin Approaches Record High On Altcoin Season Hopes; What’s Next?

Litecoin to $190?

Upon close inspection of near-term resistance points, it becomes clear that bulls intend to add another 12% to the current litecoin price by pushing it all the way to $190. This is corroborated by the 20-day exponential moving average (EMA) line.

If buyers can sustain the bullish momentum and push past the $190 resistance, the 100-day MA line shows that a retest of $230 will become quite possible.

Failure to keep the bullish momentum alive will lead to the LTC/USD pair dropping to the support at $127, shown by the 350-day MA line. If the selloff continues, the Litecoin price could very well drop down to $115 (400-day MA).

Read More: Litecoin Hits All-Time High Amid Crypto Market Boom — Crash Ahead?

litecoin, Litecoin bulls attempting 12% rally in a breakout move
A Worst Case Scenario Could See Litecoin Prices Crashing Down To $115 And Beyond, Source: LTCUSD on TradingView.com

Whether a rally will shape up or drop, that still remains to be seen.

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Himadri Saha

Himadri is an active investor in cryptocurrencies and upcoming blockchain technology projects. He has been a part of the digital asset space since 2017 and has held multiple positions as Social Media Manager, Assistant Editor, Sponsored Content Manager, Cryptocurrency Journalist roles in reputed news outlets like NewsBTC, Bitcoinist and CryptoPotato. He has also helped numerous blockchain projects gain prominence through terse and succinct marketing/technical content. Himadri comes with a marketing and engineering background, and has worked with reputed names such as GE Healthcare, Volvo Trucks and Polycom before moving into crypto.

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