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Litecion Price Prediction: LTC coiled and ready to spring to $200

  • Litecoin price action develops a massive bear trap.
  • A powerful bullish breakout setup could trigger a 66% rally.
  • Limited downside risks going into the weekend.

Litecoin price is positioned for one of the most significant probable breakouts LTC has seen since August 2021. The $2.00/3-box reversal Point and Figure chart have developed a phenomenal theoretical long entry opportunity.

Litecoin price poised to explode and possibly outperform the majority of the altcoin market

Litecoin price action has moved into a position that could soon generate a massive spike. The theoretical long entry is a buy stop order at $140, a stop loss at $132, and a profit target at $230. This long idea is based on a rare pattern known as a Bullish Shakeout.

The Bullish Shakeout pattern in Point and Figure analysis may sound bearish, but it is a form of a bear trap. The pattern requires that an instrument is in a bull market and above the bull market support line. It also requires that at least a double-top has formed. Finally, and most importantly, there must be a false sell signal in the form of two O’s below a double-bottom.

LTC/USD $2.00/3-box Reversal Point and Figure Chart

Another piece of criteria for Litecoin price to confirm the Bullish Shakeout pattern is that it must form early during an uptrend. Litecoin price just converted into a bull market, only three X columns back. So it is technically still in the first pullback from the bull market conversion.

Litecoin price can print one more O below the current O column (to $130), but the theoretical long setup is invalidated if it prints another O. In that scenario, Litecoin could be in the early stages of a bearish continuation setup that would likely confirm a bear market.

Author

Jonathan Morgan

Jonathan Morgan

Independent Analyst

Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.

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