Litecoin price could rally 20% in October, here's why
- LTC price shows bullish momentum on the Relative Strength Index.
- The volume profile indicator shows bears are not actively shorting.
- Invalidation of the bullish thesis is a breach below $50.81.
Litecoin price could rise in the coming days. Key levels have been identified.
Litecoin price might rally
Litecoin price could take the cryptocurrency market by surprise as a bullish retaliation may unfold in the coming days. Litecoin, the digital silver akin to Bitcoin’s comparison to Gold, has been trading range bound throughout September near the mid $50 level. On October 4, the bulls managed to breach the previous weekly high while dually rallying impulsively.
Litecoin price currently auctions at $54.55. The bulls are testing support from the 8- and 21-day simple moving averages after tagging the previous weekly high at $55. The breach of the weekly high could be viewed as a “calm before the storm signal” If the indicator fails, a rise to the $60 and $66 price levels could occur.
LTC/USDT 3-Hour Chart
The Relative Strength Index is leaning more towards the bullish narrative on smaller time frames. The volume profile indicator remains relatively sparse, showing sellers may be uninterested in lowering the LTC price at the current time.
Traders should keep their eyes on the Litecoin price in the coming days. Ultimately a breach of the weekly low at $50.81 will invalidate the bullish bias. If the invalidation occurs, a further decline towards a 2020 support zone at $45 could result in a 16% decline.
In the following video, our analysts deep dive into the price action of Litecoin, analyzing key levels of interest in the market. -FXStreet Team
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
