Litecoin Price Prediction: LTC prints new yearly high while bulls push further
- Litecoin price gains 15.77% for the best daily gain since January 3.
- Daily Relative Strength Index (RSI) not showing a bearish momentum divergence.
- Swiss SIX exchange-traded product, LITE, increases spotlight on LTC.
Litecoin price successfully broke out from a symmetrical triangle pattern on April 5 with a 9.5% gain. It printed a new rally high today at $262.98, just short of the 61.8% Fibonacci retracement of the 2017-2018 bear market at $268.06. The bullish LTC thesis sees higher levels moving forward.
Litecoin price faces limited resistance based on IOMAP figures
The successful retest of the triangle breakout on April 7 was a clear signal to speculators that LTC was primed to test the 2021 high at $247.00. Yesterday’s daily close above the February high was a new signal to speculators that LTC’s 2021 rally was set to continue.
The IntoTheBlock In/Out of the Money Around Price (IOMAP) data exposes almost no resistance between $249.73 and $287.07, projecting a test of the symmetrical triangle measured move target of $292.20. Conversely, there is a significant source of support between $227.39 and $234.72, where 69.91k addresses bought 4.17 million LTC.
ETH IOMAP chart
In an FXStreet article on April 1, it was projected that LTC was ready for a 40% gain from the symmetrical triangle breakout level, and that outlook remains the thesis today.
Some resistance may occur at the 61.8% retracement of the 2017-2018 bear market at $268.06, but IOMAP data indicate that the opposition will be short-lived. Instead, the current bullish outlook targets $292.20 as a valid profit target, a gain of 38%. There is a chance that the rally will reach the 78.6% retracement at $334.88 if volume underpins the rally.
LTC/USD daily chart
Yes, the technicals and the data paint a bullish picture, but things could change very quickly, maybe sparked by a general sell-off in the cryptocurrency complex. If that occurs, downside targets are the 21-day simple moving average (SMA) and the 50-day SMA at $204.77 and 198.45, respectively.
Speculators should mark the convergence of the triangle’s lower trend line at $181.90 and the 100-day SMA at $180.61 as the next level of support.
Author
Sheldon McIntyre, CMT
Independent Analyst
Sheldon has 24 years of investment experience holding various positions in companies based in the United States and Chile. His core competencies include BRIC and G-10 equity markets, swing and position trading and technical analysis.
