In addition to the price action, the volatility and RSI readings are both bullish, increasing the odds of a successful breakout.
Litecoin has matured, can it continue?
The weekly time frame technical analysis for LTC gives a mostly bullish outlook. There are many reasons for this.
First, since the end of May 2022, the LTC price has been inside an ascending triangle. An ascending triangle is considered a bullish pattern. Hence, a breakout of it is the most likely future price scenario.
Next, LTC price has made several attempts to break the $100 resistance zone. This makes a breakout more likely as the resistance weakens each time it is touched. Currently, it has broken the $100 resistance. However, it still needs to hold and convert it into support.
Finally, the weekly relative strength index is trending bullish. With the RSI as a momentum indicator, traders can determine whether the market is overbought or oversold and decide whether to accumulate or sell assets.
If the RSI reading is above 50 and the trend is up, the bulls have the advantage, but if the reading is below 50, the opposite is true. The indicator is above 50 and increasing. Also, it produced a hidden bullish divergence (green line).
This is a bullish continuation pattern where a decline in momentum is accompanied by a rise in price. This usually results in a continuation of the previous trend, which in this case is bullish.
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LTC Price Prediction: Volatility Count Suggests Price Will Hit New Yearly Highs
A close look at the daily time frame analysis reveals a decidedly bullish outlook, mainly because of the volatility numbers.
Technical analysts use the Elliott Wave Theory to identify recurring long-term price patterns and investor psychology that help them determine the direction of trends.
The most likely wave number shows that LTC price is in the third wave (white) of a five-wave uptrend. The third wave is usually the largest and sharpest of the five waves. So, if the counts are correct, the growth rate could pick up soon.
Correction wave two (highlighted) is shaped exactly like the counts. This is especially evident in the 1:1 length waves A:C (black).
If the count is correct, LTC price will break out soon and move into the next resistance at $130.
Although the LTC price prediction is bullish, a break below the second wave low (red line) at $71 would imply a bearish trend. Since this drop would invalidate the bullish forecast, it could lead to a drop to $50.
