• Litecoin price building a symmetrical triangle pattern.
  • Volume trending downwards over the last five weeks.
  • 10-week simple moving average (SMA) remains vital short-term support.

Litecoin price climbed almost 900% in less than a year and is now consolidating the substantial advance in the form of a symmetrical triangle as buyers and sellers’ uncertainty has led to gradually declining volatility. A breakout from the continuation pattern is often a precursor to a longer trend.

Litecoin price is no longer overbought

During the symmetrical triangle formation, volume declines almost 90% of the time, and breakouts tend to be to the upside. With LTC flashing many of the characteristics of a model symmetrical triangle and the weekly Relative Strength Index (RSI) no longer overbought, it raises the probability that the token is getting closer to an upward resolution of the pattern. 

Immediate resistance following a breakout would be the 0.50 retracement of the 2017-2018 bear market at $221.08. In fact, LTC has struggled with the price level in four of the past seven weeks. Close above this retracement level is the February high at $247.00, followed by the 0.618 Fibonacci retracement level at $268.03.

The pattern’s measured move target is $295.00, while the most optimistic projection is the 0.786 retracement level at $334.86. A test of the all-time high at $420.00 should follow another consolidation process.

LTC/USD weekly chart

LTC/USD weekly chart

First and foremost, LTC needs to hold the lower trendline at $169.60 on any weakness. If selling pressures heighten, then the June 2019 high at $146.00 is the next support level. Since there is some price congestion in that area at the beginning of this year, it should provide steady support.

A failure to bottom out at $146.00 puts the Fibonacci retracement levels of the 2020-2021 rally on alert. The 0.50 retracement level is at $136.00, and the 0.618 Fibonacci retracement level is at $109.80.

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

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Fresh lows for crypto markets in sight as recovery gains come undone

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Fresh lows for crypto markets in sight as recovery gains come undone

Bitcoin price faced an intense sell-off as it approached the recent weekly open, indicating that investors are looking to book profits. This downswing has caused Ethereum, Ripple and other altcoins to take a dip as well.

More Bitcoin News

This technical formation could push TRON’s TRX price to $0.016

This technical formation could push TRON’s TRX price to $0.016

TRON price shows that its coil up is coming to an end, suggesting that a breakout is on its way. However, investors need to know that rejection at immediate resistance barriers could trigger a correction and an eventual breakdown.

More Tron News

Why this move from Shiba Inu price could catch investors off guard?

Why this move from Shiba Inu price could catch investors off guard?

Shiba Inu price prepares for a quick retracement after nearly a week of recovery bounce. While this run-up was impressive, things are likely going to go slow for SHIB as investors continue to book profits.

More Shiba Inu News

Three obstacles that may prevent XRP price from surging

Three obstacles that may prevent XRP price from surging

A brief technical and on-chain analysis on Ripple price. Here, FXStreet's analysts evaluate where XRP could be heading next.

More Ripple News

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis

BTC

ETH

XRP