- Litecoin price slipped yesterday after a perfect series of gains since February 3.
- The dip looks short-lived as bulls are trembling before the monthly R1 and red descending trend line, poised for a breakout.
- Expect a tiered rally with profit-taking at $160, $170 and $180 before thinking about $200.
Litecoin (LTC) price underwent a short correction yesterday after bulls faced a double hurdle with the intersection of the red descending trendline with the monthly R1 resistance level. Buyers got pushed out of the breakout zone but have made a comeback today with some global market tailwinds in their corner, and they are trying to break the downtrend since November. A breakthrough would see solid gains with some profit-taking around $160, $170 and $180, before targeting $200 in the medium term.
Bull run ready to start with ultimate gains of almost 48%
Litecoin price underwent a short correction as bulls were unfit to break above the double whammy of resistance at $144. After the rejection, price slipped below the 55-day Simple Moving Average, around $134. But bulls saw a solid opening this morning with a clear bounce off that 55-day SMA and are set to break $134 with some additional tailwinds coming from global markets.
LTC price action welcomes these new tailwinds as investors look beyond central banking and start to look for more investment opportunities, including cryptocurrencies. The additional interest, buy volume, and tailwinds set Litecoin up for a breakout trade with the monthly R1 resistance level as the critical level to close above this week. From there, the following level to sight is $160, as the cap of the distribution zone. Following that is $170 and the 200-day SMA, and after that $180, situated near the monthly R2 resistance level.
LTC/USD daily chart
As the hurdles at $140 already proved too big for bulls to get over, that could still be the case today. With the risk of price action being rejected again, expect a more extensive downward move, with the 55-day SMA not supportive enough and price probably falling back to $120. At that level, bulls have the monthly pivot for an entry to make another attempt at the red descending trend line in a few weeks time.
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.
Recommended Content
Editors’ Picks
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.