- 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.
Recommended Content
Editors’ Picks
Ripple holders' profit taking hits a 19-month high as XRP price shoots up by 42%
XRP price has performed beyond expectations and has marked a multi-month high, restoring confidence in its investors. These holders have also made the most of the situation and turned to sell, which could backfire on the price action soon.
Decentraland Price Forecast: What to expect from MANA as Metaverse Fashion Week kicks off

Decentraland price (MANA) has identified critical support on day one of the Metaverse Fashion Week. The token is trading horizontally on the four-hour timeframe as bulls push to break above a descending trendline.
Ethereum devs confirm withdrawals to begin on April 12; Here's what to expect from ETH price

Ethereum is on the verge of bringing about one of the biggest upgrades to the blockchain since the Merge. The arrival of withdrawals has been anticipated for a long time now, however, it may not be as lucrative for Ethereum price as one might expect.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Market woes threaten bullish potential, XRP is undeterred

Bitcoin has reclaimed above $27,000, but increasing market volatility threatens the leg up. Ethereum faces critical resistance at $1,819 as investor sentiment suggests liquidity issues. Ripple reaches multi-month highs amid lawsuit-related optimism.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?

Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.