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Litecoin’s (LTC) Price Moves Above Resistance: Is a 25% Climb on the Horizon?

2 mins
Updated by Ryan James
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In Brief

  • The Litecoin (LTC) price broke out from a descending resistance line after creating a bullish double bottom pattern.
  • The RSI is bullish both the daily and six-hour timeframes. Along with the price action, this legitimizes the ongoing breakout.
  • If the upward movement continues, the LTC price can increase by another 25%. However, a close below $62.50 will mean that the trend is bearish.
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The Litecoin (LTC) price created a double bottom pattern and broke out from a descending resistance line on Sept. 15.

The readings from the daily and six-hour timeframes support the validity of the breakout, hence suggesting that the increase will continue.

Litecoin Price Breaks Out After Bullish Pattern

The daily timeframe technical analysis for LTC provides a bullish outlook. It shows that the price broke out from a 74-day descending resistance line on September 15. Such breakouts often indicate that the previous bearish trend has ended and that the price has begun a new trend in the other direction.

Crypto investing, simplified. Get LTC price predictions here.

The movement before the breakout is also bullish. Between August 17 and September 11, the LTC price created a double-bottom pattern, which was combined with a bullish divergence in the RSI (green line).

With the RSI as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset. Bulls have an advantage if the RSI reading is above 50 and the trend is upward, but if the reading is below 50, the opposite is true.

The RSI is increasing and has nearly moved above 50. However, the more important reading is the bullish divergence that aligned with creating a bullish double-bottom pattern. A bullish divergence occurs when a price decrease is combined with a momentum increase. It often precedes significant upward movements.

Litecoin (LTC) Price Resistance
LTC/USDT Daily Chart. Source: TradingView

If the cryptocurrency continues to move upwards, it can increase by 25% and reach the $78-$85 resistance area. However, if the rally loses steam, a 12% drop to the $55 support area will likely be the future outlook.

LTC Price Prediction: Is Short-Term Breakout a Sign of Things to Come?

The short-term six-hour analysis also provides bullish signs. The chart shows that the LTC price broke out from a shorter-term descending resistance line, beginning the current upward movement.

Moreover, the breakout caused a reclaim of the $62.50 horizontal area, which is expected to provide support.

Finally, the RSI has increased above 50 and is currently validating the line as support (green icon).

Litecoin (LTC) Short-Term Movement
LTC/USDT Six-Hour Chart. Source: TradingView

Therefore, the most likely LTC price prediction is bullish and suggests that a 25% increase is expected. However, a close below the $62.50 horizontal support area will mean that the breakout was not legitimate, and a drop to $55 is expected.

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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.

Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.