Sheldon McIntyre, CMT
Independent Analyst
- 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.
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