Litecoin Price Prediction: Bullish cues underpin rally towards $130

Litecoin price continues to display bullish price action going into the first week of February. If market conditions persist, the bulls may be able to induce an additional 30% rally.

Litecoin price is ready to rise

Litecoin price is currently trading in the $100 region amid its uptrend stance. Since the November 9 liquidation, which briefly brought LTC into sub-$50 price levels, the bulls have recovered 100% of the lost funds. 

Litecoin price currently auctions at $101. The Relative Strength Index (an indicator used to gauge momentum) on the weekly time frame shows a peculiar situation as LTC price rallies towards overbought conditions. There is a bearish divergence between the current price and the previous swing point in May of 2022 when Litecoin price traded at $128.70.

This price zone creates a significant amount of confluence. The bulls will either challenge the $130 price zone, or the bears using the swing point as a safety stop will enjoy a fruitful return if the uptrend fails. However, as the uptrend angle looks entirely upright, it would be ill-advised to place a short until more congestion signs are displayed. The earliest evidence of a change in trend would be a breach below the $90 swing low.

LTC/USDT 1-Week Chart

Thus, this thesis maintains a bullish outlook, with Litecoin targeting the $130 price level in the coming weeks. If the $90 swing low is breached at any time, the uptrend potential will become void. The bears would likely induce a decline targeting a previously breached ascending trend line position at $78. Litecoin's price would decline by 22% under the bearish scenario.