- Litecoin price hovers just below a descending trend channel established in February 2022.
- Litecoin price shows fewer transactions amidst the current uptrend move than the previous decline.
- A breach above the $64 level could be the catalyst to a rally targeting the 2000-week moving aveage at $100,
Litecoin price could make a run for the 200-week moving average at $100. Still traders should wait for more confirmation or be subject to a smart money trap.
Litecoin price is too early to call
Litecoin price currently auctions at $60 as the crypto market is witnessing an applaudable rebound on Friday, September 9th. Litecoin price has reconquered a newfound supportive trend line that the bears briefly breached earlier in the week. The bulls have crossed both the 8-day exponential and $21-day simple moving averages, although the volume profile is still less than it was during the trendline breach.
Litecoin price has a bullish scenario that should not be ruled out. If the Elliott Wave technicals are correct, the bulls could rally as high as $100 in the midterm without invalidating the broader bearish idea mentioned in previous outlooks.
Still, the Litecoin price will need to breach the descending trend line currently positioned at $64 before a justified entry can be made. The alternative scenario could be that the current 14% rally since the trendline breach occurred earlier this week is just a sucker's rally meant to entice hopeful investors.
Thus traders' safest bet is to remain sidelined (missing out on the first 15% of the anticipated 60% rally targeting the 200-week moving average at $100) until the descending trend channel's breach is accomplished.
In the following video, our analysts deep dive into the price action of Litecoin, analyzing key levels of interest in the market. -FXStreet Team
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