• 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.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin price hears jingle bells rolling in

Bitcoin price hears jingle bells rolling in

BTC is popping higher this Tuesday morning in the ASIA PAC session as Chinese markets spurt higher. After the social unrest over the weekend and on Monday, markets are taking a turn as the Chinese government comes with more easing policy guidance and commits to speed up the vaccination rate. Markets are rallying as another supply chain glut is to be avoided, and inflation forces should decrease a bit further, triggering a rally in BTC that could continue into Christmas.

More Bitcoin news

Binance price shows promising support that could bring $400 onto quote board

Binance price shows promising support that could bring $400 onto quote board

Binance jumps over 3% as China sentiment flips into risk-on. Buyers blowing up the demand side with a bounce off a technical moving indicator.

More Binance news

Can XRP price kick-start 30% upswing if China removes zero-Covid restrictions?

Can XRP price kick-start 30% upswing if China removes zero-Covid restrictions?

XRP shows that it is taking its sweet time to overcome and sustain above a crucial resistance level. If successful, it could catalyze a quick run-up.

More Ripple news

Solana price set to gear up for Dominica coming online with cryptocurrency

Solana price set to gear up for Dominica coming online with cryptocurrency

Get set for the Commonwealth of Dominica to introduce a new coin. SOL should see a positive tailwind from the Tron network rolling out the Domnica Coin.

More Solana news

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

BTC is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read full analysis

BTC

ETH

XRP