• Litecoin price triggers a falling wedge pattern, leading to a 33% gain over nine consecutive up days.
  • LTC now illustrates a double bottom pattern, but heavy resistance may prevent a successful breakout.
  • 2019 high of $146.00 resurfaces, raising doubts of the rally sustainability, despite impulsive rebound.

Litecoin price confirms breakout from the governing falling wedge pattern on July 25, marking a turning point for the altcoin and introducing new technical challenges. If the obstacles are overcome, the double bottom pattern projects a 30% gain for LTC in the weeks ahead.

Litecoin price to correct before engaging trifecta of resistance  

Litecoin price may close today with nine consecutive up days, marking the first nine-day gain since 2017 and, as a result, establishing confidence in rally sustainability as LTC approaches a trifecta of resistance.

The origination of the rally coincided with a test of the 78.6% Fibonacci extension of the 2020-2021 advance at $108.23 and an oversold reading on the daily Relative Strength Index (RSI) on July 20.

The emerging trifecta of resistance includes the 50-day simple moving average (SMA) at $138.20, the 50-week SMA at $141.51 and the 2019 high of $146.00. The levels are now gaining relevance as Litecoin price battles the 50-day SMA. Moreover, the barrier formed by the three levels stands before the LTC double bottom trigger at $149.27.

Based on the run of nine consecutive up days and a gain of 30% in that period, combined with superior resistance, Litecoin price is highly likely to enter some form of corrective process. The corrective process could carry LTC to the upper line of the falling wedge at $119.80, leading to a 15% loss from the current price.

Any weakness below the trend line will suggest the rebound was a dead cat bounce and will invite a test of the 78.6% retracement level at $108.23. A failure at the retracement level exposes Litecoin price to a drop to the lower line of the falling wedge pattern, currently at $92.00.

LTC/USD daily chart

Suppose the corrective process holds the wedge’s upper line. In that case, Litecoin price will have released the price compression generated by the initial rebound and positioned LTC for a successful breakthrough of the trifecta of resistance, and triggering the double bottom pattern framed by the June and July lows.

The measured move of the double bottom pattern is 30% from $149.26, indicating a profit target of $194.04. The profit target lies just above the 200-day SMA at $191.13.

The falling wedge signaled waning momentum to the downside. Litecoin price capitalized on the oversold condition to break out from the pattern and record nine consecutive days. Now, LTC needs to pause, but the foundation and momentum have been established to propel the digital asset through the double bottom trigger.

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

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Cardano price positioned for bullish reversal, with 100% gains in sight

Cardano price action has been some of the most dismal and disappointing out of all the major cryptocurrencies. But Cardano’s fortunes are about to change.

More Cardano News

Binance Smart Chain implements ongoing burn like Ethereum’s EIP-1559

Binance successfully concluded the Bruno upgrade v1.1.5 earlier today. A burn mechanism is now implemented to reduce the circulating supply of Binance Coin. 

More Binance Coin News

XRP nodes run by Ripple fell out of sync for over 5 hours, disrupted wallet services

Public XRP ledger nodes “s1” and “s2” run by Ripple fell out of sync with the XRP ledger for over 5 hours yesterday. Non-custodial XRP wallet Xumm was not functioning well, disrupting usage and accessibility. 

More Ripple News

Chainlink price ready to reverse, 30% upswing likely for LINK

Chainlink price seems ready for a reversal of its two-week downswing as it attempts to create a higher high. This outlook is also supported by on-chain metrics, which suggest the possibility of accumulation at the current levels for LINK.

More Chainlink News

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

BTC

ETH

XRP