• 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.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

LUNA price approaches a launchpad, but will buyers come together?

LUNA price approaches a launchpad, but will buyers come together?

LUNA price shows a sign of healthy retracement after an egregious spike in buying pressure that triggered a quick and swift run-up. The ongoing pullback will provide investors with another chance to rally.

More Terra news

Why buying Solana price at these levels will provide the best ROI?

Why buying Solana price at these levels will provide the best ROI?

Solana price seems to be hovering inside a consolidation with no signs of a breakout. Investors can expect a dip to $31.66 or $24.52 levels in the near future as liquidity below these levels remains untapped.

More Solana news

Shiba Inu price hints at a 150% upswing, an opportunity too good to pass up

Shiba Inu price hints at a 150% upswing, an opportunity too good to pass up

Shiba Inu price has been hovering around a significant barrier for roughly three months with virtually no momentum to move above it. This development might be primed for a strong move but the directional bias remains unknown. 

More Shiba Inu news

Bitcoin Price Prediction: An update on the fractal forecast to $21,000

Bitcoin Price Prediction: An update on the fractal forecast to $21,000

Bitcoin price shows lackluster performance despite the announcement of BlackRock’s entry into crypto. Due to the spotlight on Ethereum and its upcoming Merge update, investors seem to be neglecting BTC.

More Bitcoin news

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP