Litecoin price energized, LTC to rally another 10% before profit-taking emerges
- Litecoin price releases from the handle on August 7, and the breakout is successfully tested on August 9 with a bullish outside day.
- Double bottom measured move of 30% harmonizes with the 200-day simple moving average (SMA) at $191.59.
- LTC shows no signs of a bearish momentum divergence on the intra-day charts.
Litecoin price has engineered a 61.78% rally since July 21, and it is approaching the 200-day SMA for the first time since early June. An improved volume profile has supported the rally, and the intra-day charts do not show a bearish momentum divergence that often disrupts trending digital tokens. LTC should continue progressing to the measured move price target of $191.00 or higher for those reasons.
Litecoin price kicks off a bullish stampede
The Litecoin price rally began with ten consecutive positive sessions from July 21 to July 30, marking the first ten-day streak since 2017 and establishing the foundation for the LTC strength over the last week.
The breakout from the double bottom with handle on August 7 has renewed the LTC rally with greater impulsiveness, highlighted by the August 9 daily gain of 11.04%, distinguishing it as the largest gain since the 29.92% spike on May 24. Moreover, the breakout confirmed the release of Litecoin price from the grip of the resistance dictated by the 50-week SMA at $145.50 and the 2019 high at $146.00.
The double bottom with handle’s measured move is 30.40%, specifying a Litecoin price target of $191.00, which lies below the 200-day SMA at $191.59 and aligns with price congestion from late May to early June. It is an obvious point for some form of pullback and the basis for profit-taking LTC speculators.
Additional LTC upside will discover resistance at the 38.20% Fibonacci retracement at $222.31.
LTC/USD daily chart
A reversal of fortune should not push Litecoin price below $146.00. If so, the 50-day SMA at $136.11 would be the final line of defense before a retest of the 78.6% retracement of the 2020-2021 LTC advance at $108.23.
Litecoin price has shed the resistance of the 2019 high and powerfully emerged from a double bottom with handle pattern, presenting conclusive breakthroughs that will energize LTC to meet the measured move target of $191.00, or even the 200-day SMA at $191.59, yielding a 10% profit from the current price.
Author
Sheldon McIntyre, CMT
Independent Analyst
Sheldon has 24 years of investment experience holding various positions in companies based in the United States and Chile. His core competencies include BRIC and G-10 equity markets, swing and position trading and technical analysis.
