Litecoin develops bullish buying pattern before LTC hits $150
- Litecoin price action develops a pattern seen across the altcoin space: the inverse head-and-shoulders pattern.
- LTC faces a strong cluster of resistance before it can move towards the $200 value area.
- Downside risks are significant and highly probable.
Litecoin price faced significant selling pressure on Thursday, following other risk-on markets lower due to war jitters and continued inflation worries. However, that didn’t stop LTC from developing a likely bullish reversal setup.
Litecoin price must cross and close above $143 to prevent further bearish pressure
Litecoin price has a massive collection of resistance levels ahead that it must break before extending into a bull market. Between the price levels of $130 to $143, Litecoin must break the following technical levels:
- Daily Tenkan-Sen at $130
- 38.2% Fibonacci retracement at $132
- Top of the Ichimoku Cloud (Senkou Span B) at $133
- The neckline of the inverse head-and-shoulders pattern at $140
- 50% Fibonacci retracement at $143
The number of resistance levels and the strength of those levels may prove to be a daunting task – but certainly not insurmountable. The most critical, near-term level for bulls to target is a close above the Ichimoku Cloud at or above $133. In that scenario, most of the short-term bearish outlook would be eliminated.
LTC/USD Daily Ichimoku Kinko Hyo Chart
However, bears are not far away from achieving a move that could trigger a considerable sell-off below the $100 level. If the Chikou Span closes at or below $106, it will be below the bodies of the candlesticks and in open space – initiating an Ideal Bearish Ichimoku Breakout. From there, a push towards $95 for Litecoin price is highly probable.
Author
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.
