• Litecoin price clear and definite prior uptrend supports a cup-with-handle base.
  • U-shaped bottom enforces the bullish outlook.
  • Bears unsuccessfully trying to pull LTC price below the 50-day simple moving average (SMA).

Litecoin price suggests a balance between supply and demand and confirms the bullish view that selling pressure has been exhausted.

Litecoin price reflecting historical precedent for superior bases

A strong price pattern of any type, like a cup-with-handle, “should always have a clear and definite price uptrend prior to the beginning of its base pattern.” 

In most cases, the bottom part of the cup should be rounded to scare or wear out the last of the weak holders. The handle should have a downward drift and correct around 15% from its peak. Additionally, it should form in the upper half of the overall base and above the 50-day simple moving average (SMA). 

Over the last three days, Litecoin price action has been very constructive. It is holding the 50-day SMA and remains in the upper half of the base. The handle correction is 17%, and the price has declined on lighter volume. 

Based on a rough pattern projection, LTC should take another 3-4 days to complete the handle.

Critical to the bullish forecast is Litecoin price holding the confluence of the 50-day SMA and the 50% retracement level, which is around $195.

Once the handle’s high at $230 is surpassed, the immediate target is the high at $247. The next important target is the 1.382 extension level of the entire base pattern at $29, which would represent a 29% gain from the handle high.

LTC/USD 12-hour chart

A daily close below $195 would invalidate the bullish outlook and push Litecoin price down to at least the 100-day SMA at $182.32.

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

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Weekly Forecast: Musk changes tune on BTC as adoption and miners continue to make headway

Bitcoin price revival appears to be going well considering the recent sweep of the July 15 swing high. While this uptick in the market value of BTC is bullish, there is bound to be a minor pullback that will help catapult the pioneer cryptocurrency higher.

More Bitcoin News

TRON price sits on strong support while TRX bulls plan 70% breakout

A brief technical and on-chain analysis on TRON price. Here, FXStreet's analysts evaluate where TRX could be heading next as it seems bound for higher highs.

More Tron News

Cardano might pull back to $1.11 before heading higher

Cardano price has seen a quick run-up after approaching the trading range’s lower limit. While this uptick in ADA’s market value was obvious, investors should be aware of a minor pullback before the so-called “Ethereum killer” embarks on another leg up.

More Cardano News

Dash price must overcome imposing resistance to breakout

A brief technical and on-chain analysis on Dash price. Here, FXStreet's analysts evaluate where DASH could be heading next as it consolidates.

More Dash News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP