Litecoin: Recent uptick in RSI suggests a bullish breakout on the horizon

Litcoin (LTC) price has been putting in lower highs and higher lows since October 18 and is still respecting the trend lines that form the outline of a pennant pattern. During this time, the Relative Strength Index (RSI) briefly touched the overbought barrier but faded towards 50. A recent uptick spells more buy-side action and could see a pennant breakout towards $236.96.

Litcoin price RSI uptick signals increase in buy-volume 

Litecoin price bounced off a green ascending trend line on Wednesday, and since then, the RSI has seen an uptick above 50. Bulls will probably have used the 55-day Simple Moving Average (SMA) and the monthly pivot at $177.40 as additional entry points for longs. Currently, the 200-day SMA saw a test but no break, and as LTC price holds above the 200-day SMA, a squeeze against the red descending trend line of the pennant could be a sign of a bullish breakout.

LTC price will want to see a clear break of the descending trend line at $215.34. Such a break would attract many hesitant buyers waiting on the sidelines. That signal would add a massive amount of new buying volume and easily break the R1 towards $236.96.

LTC/USD daily chart

With global markets a bit on the back foot today it could well be too soon for bulls to try and make a breakout. LTC price could get rejected by the red descending trend line which would push bears down back towards the monthly pivot at $177.40. A test and break of the green ascending trend line would see a return to the starting point of this uptrend at $140.