On Jan. 4, the Litecoin (LTC) price reached a high of $173, a high not seen since 2018.
While it could continue increasing and reach the $185 resistance area, it appears the current rally is top-heavy, and a corrective movement will soon follow.
LTC’s Long-Term Movement
The weekly chart shows that LTC has finally moved above the June 2019 highs at $145 and has actually reached a weekly close above this level.
If it continues increasing, the next resistance areas would be at $186 and $225, the 0.5 and 0.618 Fib retracement levels, respectively.
Technical indicators are bullish, supporting the possibility of a breakout and a gradual move towards the resistance areas outlined.
Cryptocurrency trader @Pentosh1 outlined a chart, stating that once the final resistance area at $140 is broken, a significant upward move is likely to follow.
Since the tweet, LTC has moved above this level and is thus likely to continue increasing.
Continuation of the Move
The daily chart shows signs of weakness, in the form of a bearish divergence in the RSI. Nevertheless, both the MACD and the Stochastic Oscillator are bullish.
Due to the very rapid rate of increase, there aren’t any significant support areas. The closest is at $120.
The two-hour chart shows signs of continuation in the form of hidden bullish divergence in the RSI. Combined with the long lower wick, this suggests that LTC is likely to move upwards.
Wave Count
The wave count suggests that LTC has begun a bullish impulse (shown in white below) with its March lows, currently trading near the top of the third wave, which has become extended. The sub-wave count is shown in orange.
Therefore, while LTC could potentially increase in the short-term, reaching a high near the $185 resistance area outlined in the first section, a correction would likely follow.
LTC/BTC
The weekly chart shows that both the RSI and the MACD have formed bullish divergence since the beginning of April despite the ongoing decline. LTC has been moving upwards since it reached a low of ₿0.0036 on Nov. 12.
If LTC/BTC resumes its upward movement, the closest resistance area would be at ₿0.008.
Conclusion
To conclude, while LTC could potentially resume its movement towards the $185 area, it is overdue for a correction. LTC/BTC meanwhile looks bullish in the long-term.
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Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
