- Litecoin price dips below the monthly S1 support level.
- LTC sees bulls accumulating within a historical zone.
- Expect RSI to indicate further support, making demand persistent in 2022.
Litecoin (LTC) price is currently on the backfoot as thin volume sparks a slight correction, pushing price action below the monthly S1 support level at $160. With that move, however, LTC has entered a pre-defined zone providing an excellent buying opportunity between $155 and $138. Expect demand to stay persistent in 2022, which should spark a short rally back up to $170.
Litecoin sees demand persisting going into 2022
Litecoin price has retreated these past four days as investors pulled trades before hitting $170, where the 200-day Simple Moving Average has capped price action throughout December. Now LTC price has entered a zone which historically has seen a lot of distribution and often sparked uptrends or rallies. It looks like this pattern will repeat itself again, with the Relative Strength Index (RSI) going sideways as the price action dips, which points to an environment conducive to moderate buying.
Expect LTC price action to range trade between $155 and $138, as seen a few weeks ago. This offers a perfect trade setup with a fade-in trade to average in Litecoin. Expect a bullish uptick in the first trading days of 2022, which will see a breakout above the S1 support level at $160 and a test around $170 against the 200-day SMA.
LTC/USD daily chart
If bulls can break above the 200-day SMA, expect to see a large pick-up on the demand side with buying volume tripling and a quick uptick towards $190, where the 55-day SMA is likely to provide resistance. From there, the most logical profit target will be the monthly pivot just above $230 and the technical, historical level at $237.
If a global market rout arises for cryptocurrencies, expect LTC price action to test the lower end of the range at $138 and possibly $130, the low ofDecember 04.
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