Lorenzo Stroe
Independent Analyst
- Litecoin price is at $55.88 after a notable dip towards $53.44.
- The LTC/BTC chart shows a descending wedge pattern that is on the verge of a breakout.
LTC seems to be trading inside a descending wedge formed on the monthly chart and is currently at $55.88, after having touched $53.44. The pattern is on the cusp of a massive breakout. Additionally, an essential technical indicator is about to present a strong buy signal.
Litecoin price prediction: The technical picture
One of the most important charts for Litecoin in the long-term is the monthly LTC/BTC chart. The descending wedge that formed here is on the verge of a breakout, and the TD Sequential indicator presents a red eight candle signal, which often precedes a strong buy signal.
LTC/BTC monthly chart
When looking at the past two instances when the TD Sequential indicator flashed buy signals in the 1-month chart, Litecoin's price went through significant bull rallies. The first major price explosion took place in February 2017, when LTC jumped 600% against BTC within five months after the TD setup turned bullish. A similar price action was seen around December 2018 as the LTC/BTC trading pair surged over 175% within five months.
Moreover, it seems that the MACD is slowly turning bullish for the first time since April 2019. If all of these positive signals are validated, Litecoin would have a price target of 1.28 million satoshis or around $154.
It is worth mentioning that LTC also appears to be forming a morning star pattern like the one we saw in November 2017. This is a notable sign of a reversal, especially when combined with the TD Sequential indicator.
LTC IOMAP chart
While the long-term price action for the LTC/BTC trading pair is quite optimistic, IntoTheBlock's In/Out of the Money Around Price (IOMAP) model shows a robust resistance ahead of the LTC/USD trading pair. Roughly 141,500 addresses are holding over 4.7 million LTC between $57 and $59. Such a massive supply barrier must be turned into support to add credence to the bullish outlook.
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 on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.