Litecoin price breakout puts the February high in the sight lines
- Litecoin price ended a 15-day corrective phase with a new buy signal.
- Volume profile shows a lack of accumulation to start the rally.
- The first major resistance is the .618 Fibonacci retracement level.
Litecoin price suffered a notable correction in late February, taking it down almost 38% from the peak at $247 over the course of 8 trading days. Current price action indicates that the corrective process is complete and more gains can be expected.
Litecoin price needs high volume to advance further
From February 3 to March 8, Litecoin price shaped a constructive inverse head-and-shoulders pattern on the 12-hour chart, providing a bullish platform for a renewal of the long-term uptrend. Adding to the bullish backdrop was the light volume during the formation of the pattern, demonstrating a lack of selling pressure from market participants.
If the rally gains momentum supported by heavy volume, the next major upside target for LTC is the .618 Fibonacci retracement level at $211.
A successful break above that level will project the rally continuing to the February’s high at $246.49, where a price pause will likely emerge.
LTC/USD 12-hour chart
The key to the bullish outlook is for Litecoin price to hold the neckline at $188.00 on any pullback in the new rally. Slicing through this hurdle may increase the probability of a decline to the right shoulder's low at $169, which will suggest that a more complex bottoming process is unfolding.
Author
FXStreet Team
FXStreet
