• Litecoin price has breached a descending trend line with impulsive-looking price action. 
  • The 200-week moving average is currently priced at $100.
  • Invalidation of the bullish thesis is a breach below $51.

Litecoin price is showing bullish short-term technicals. Key levels have been identified. 

Litecoin price on its way back to $120

Litecoin price could be setting up for a powerful move in the coming weeks. Since August's final days, LTC has presented two alternative scenarios with entirely different outcomes. A bullish vs. bearish scenario was issued last week, which identified the ideal market behavior Litecoin price would need to display to be bullish in the short term.

On Tuesday, September 13, the bullish scenario was validated as the LTC price successfully breached a descending trend line. An impulsive-looking rally has accompanied the trend line breach since the early September liquidation. If the technicals are correct, Litecoin price could unfold a much larger countertrend rally.

tm/ltc/9/13/22

LTC USDT

The 200-week moving average is currently positioned at $100 and could be an area of interest for high-cap traders to aim. The key level has not yet witnessed a retracement since losing the support of the Litecoin price in May 2022. Furthermore, Fibonacci Retracement levels of the entire decline from the all-time highs to the current lows also show strong FIB clusters between the $100-$120 area. 

Lastly, the IntoTheBlocks' Daily Active Addresses Ratio Indicator shows a reading near the 2017 lows prior to Litecoin infamous 10X rally. In theory, the indicator hints that Litecoin investors are holding their positions, uninterested in selling at current market value. 


tm/ltc/9/18/22
IntoTheBlocks' Active Address Ratio

When combined, Litecoin price may take sleeping bulls by surprise. Invalidation of the bullish thesis is a break below the August 27 swing low at $51. If the bears breach this level, the LTC price could fall to $30, resulting in a 55% decrease from the current Litecoin price.

In the following video, our analysts deep dive into the price action of Litecoin, analyzing key levels of interest in the market. -FXStreet Team


 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

AVAX Price Prediction: Traders bet should be on Avalanche bulls triggering a 15% rally

AVAX Price Prediction: Traders bet should be on Avalanche bulls triggering a 15% rally

AVAX price has broken out of a critical hurdle and pattern, signaling the start of a quick run-up. However, bulls currently face AVAX price has breached an inverse head-and-shoulders setup, hinting at a 13% upswing. AVAX price has broken out of a critical hurdle and pattern.

More Avalanche news

XRP Price Prediction: Ripple bulls delay an inevitable retest of $0.60

XRP Price Prediction: Ripple bulls delay an inevitable retest of $0.60

XRP price shows a clear sign of exhaustion after overcoming the selling pressure and flipping a significant resistance level into a support floor. Adding credence to the current scenario is Bitcoin’s lack of volatility, which has caused most altcoins to come to a standstill.

More Ripple news

Ethereum Price Prediction: ETH bulls come to the rescue with a plan to revisit $1,500

Ethereum Price Prediction: ETH bulls come to the rescue with a plan to revisit $1,500

Ethereum price set up a local top after a quick run-up over the last week. This move was followed by a tight consolidation that resulted in a breakdown, allowing sidelined buyers to step up. As a result, ETH is primed for a quick run-up.                                     

More Ethereum news

Assessing the chances of Bitcoin price revisiting $20,000 before 2022 ends

Assessing the chances of Bitcoin price revisiting $20,000 before 2022 ends

Bitcoin price shows a tight consolidation in the four-hour timeframe, indicative of a volatile move. The most plausible outcome of this range tightening would be a minor correction to rebalance the imbalance present to the downside. 

More Bitcoin news

Bitcoin Weekly Forecast: Assessing likelihood of 80% rally for BTC before 2023

Bitcoin Weekly Forecast: Assessing likelihood of 80% rally for BTC before 2023

A massive bullish move is coming. In the last two articles, we have taken a look at why this is possible from a technical and on-chain perspective. In this weekly forecast, we will take a look at Bitcoin’s monthly performance for the last decade and determine if this bullish outlook is possible. 

Read full analysis

BTC

ETH

XRP