• Litecoin sees price hovering below the monthly S1 support.
  • LTC bulls are actively buying in a range that holds historical importance.
  • Expect a bullish breakout in the coming days once market turmoil fades.

Litecoin (LTC) is seeing an attempt to break above S1 monthly resistance being rejected. That said, Bulls are still actively buying in the red zone, preparing for another bullish breakout attempt. Given built-in momentum, for now, only global market sentiment is weighing on LTC price action. If $160 breaks to the upside, expect a bullish run towards $230, holding a 46% profit potential.

Litecoin bulls are preparing for 46% of gains

Litecoin price has been stuck in a distribution phase between $140-$160, for most of December. During this time, bears and bulls have been exchanging positions intensively, and normally, these sorts of phases end with a bullish breakout. Resistance remains from the monthly S1 at $159 at the top of the distribution zone, as well as headwinds from global markets this morning, with Omicron stoking investors' worries of a reinstitution of economically devastating lockdowns. 

LTC will see bulls accumulating  in the red zone, with support present at $140. The Relative Strength Index is starting to tick up slowly, revealing momentum building in favor of a bullish breakout. Once global market headwinds start to fade, expect a break above $160 and an initial first test of the rally at $170, where the 200-day Simple Moving Average (SMA) is situated.

LTC/USD daily chart

LTC/USD daily chart

Once punched through, the 200-day SMA will probably  turn into support. Following that, expect not much in the way of resistance all the way up to $230 except the 55-day SMA at around $195, which could trigger some profit-taking. Should the S1 monthly support at $160, or the 200-day SMA reject price, expect LTC price to collapse and quickly dip back to $140 for a test of support and a possible dip lower towards $130, forming a double bottom when coupled with the falling knife correction a few weeks ago.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Can Solana price enter a 50% relief rally?

Can Solana price enter a 50% relief rally?

Solana price is in the beginnings of a quick recovery rally that could propel it back to levels that were last seen nearly two weeks ago. Two technicals back the claim for why SOL could be ready for this ascent.

More Solana News

Ethereum Price Prediction: ETH will sweep the lows at $1,500

Ethereum Price Prediction: ETH will sweep the lows at $1,500

Ethereum price displays reasons to believe in a ‘sweep the lows’ event in the coming days. Traders should approach the smart contract blockchain with caution.

More Ethereum News

Assessing the possibility of a 40% upswing for Cardano

Assessing the possibility of a 40% upswing for Cardano

Cardano price is in a spot favorable for the bulls and short-term traders as a rally might be in the works. A minor retracement will allow interested buyers an opportunity to accumulate ADA at a discount before catalyzing an explosive uptrend.

More Cardano News

Bitcoin Weekly Forecast: The last rebound before capitulation

Bitcoin Weekly Forecast: The last rebound before capitulation

Bitcoin price is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the highier time frames suggests that the bottom is not in yet.

More Bitcoin News

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis

BTC

ETH

XRP