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Litecoin Price Prediction: LTC on cusp of 26% breakout

  • Litecoin price is traversing a head-and-shoulders pattern, hinting at a breakout soon.
  • A decisive close above the neckline at $191.20 will kick-start a 26% ascent to $243.07.
  • A breakdown of $165.28 will create a lower low, invalidating the bullish thesis.

Litecoin price is on the penultimate leg of a technical formation that will catalyze a quick bull rally. LTC needs to clear one critical hurdle to kick-start a run-up to levels last seen more than a month ago.

Litecoin price coils up

Litecoin price has been on a slow but steady uptrend since October 13 and is approaching an inflection point. From September 7 to October 19, LTC set up three distinctive swing lows. The central one is deeper than the ones on either side and forms the head. In contrast, the ones on either side of comparable depths are referred to as shoulders. Together, this price action is known as head-and-shoulders.

A trend line drawn across the peaks of these swing lows results in a neckline or horizontal resistance at $191.20. This technical formation forecasts a 26% upswing, determined by adding the distance between the neckline and the head’s lowest point. Adding this measure to the breakout point at $191.20 reveals a target at $243.07.

While this theoretical target for Litecoin price is plausible after producing a decisive close above the neckline, it will face hurdles at $212.26 and $232.68 before reaching its target. Therefore, Litecoin price must shatter these blockades to achieve a 26% ascent to $243.07.

LTC/USDT 9-hour chart

LTC/USDT 9-hour chart

On the other hand, Litecoin price might not produce a breakout above $191.20 from its current position. Investors must expect the possibility of LTC retesting the $176.68 or $170.48 support floors before proceeding to shatter the neckline.

If Litecoin price fails to bounce off $165.28, it will put the upswing in jeopardy. A lower low below this barrier will put the bulls in a tight spot and invalidate the bullish thesis. In such a situation, LTC is likely to slide lower and retest $158.14 or other support floors.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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