- Litecoin price respects a pennant formation with lower highs and higher lows.
- LTC price has seen RSI dipping towards 50, but bulls are picking up the volume with a recent uptick.
- A bullish breakout looks to be in the making, with a test at $236.96.
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.
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
Bitcoin Price Forecast: BTC misses Santa rally even as on-chain metrics show signs of price recovery
Bitcoin (BTC) price hovers around $97,000 on Friday, erasing most of the gains from earlier this week, as the largest cryptocurrency missed the so-called Santa Claus rally, the increase in prices prior to and immediately following Christmas Day.
$18 billion in Bitcoin and Ethereum options expire today: Market braces for big moves
A record-breaking $18 billion in Bitcoin and Ethereum options expire today, sparking anticipation of sharp market moves and potential volatility.
Crypto.com launches US trust company for digital asset custody
Crypto.com launches a US trust company to offer digital asset custody services, marking a major step in its North American expansion strategy.
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.