Crypto Analysis: (LTC) Litecoin Price Breaks Out with Bullish Momentum

Crypto Analysis: (LTC) Litecoin Price Breaks Out with Bullish Momentum

Crypto News – Litecoin (LTC) demonstrated a notable pattern with a double bottom and a subsequent breakout from a descending resistance line on September 15.

The analysis across daily and six-hour timeframes strongly supports the credibility of this breakout, suggesting a probable continuation of the upward trend.

Breaking down the Litecoin price movement, the daily timeframe indicates a bullish outlook. The price successfully breached a descending resistance line that had persisted for 74 days, marking a potential end to the preceding bearish trend and the initiation of a new upward trend.

Prior to this breakout, the market showcased bullish behavior between August 17 and September 11, forming a double-bottom pattern in the LTC price. This pattern coincided with a bullish divergence in the Relative Strength Index (RSI) indicated by the green line.

Utilizing the RSI as a momentum indicator, traders can assess whether a market is overbought or oversold, aiding in decision-making regarding asset accumulation or sale. Generally, an RSI reading above 50 during an upward trend favors bulls, whereas a reading below 50 indicates the opposite.

The RSI is on an upward trajectory and is nearing the 50 mark. Notably, the significant indicator is the bullish divergence aligning with the formation of the bullish double-bottom pattern. A bullish divergence manifests when a price decrease is accompanied by a surge in momentum, often preceding substantial upward price movements.

If the cryptocurrency maintains its upward trajectory, it could potentially experience a 25% increase, reaching the resistance range of $78-$85. However, if the rally loses momentum, a 12% dip to the $55 support range appears likely.

LTC Price Prediction: Does the Short-Term Breakout Foreshadow Future Trends?

A closer look at the six-hour analysis provides further bullish indications. The chart illustrates a breakout from a shorter-term descending resistance line, initiating the ongoing upward movement.

Furthermore, this breakout led to a reclaim of the $62.50 horizontal level, expected to act as a support zone.

Additionally, the RSI has surged above 50 and is presently validating this line as a support level (indicated by the green icon).

In conclusion, the LTC price prediction leans towards a bullish trend, suggesting a potential 25% increase. However, a close below the $62.50 horizontal support zone would cast doubts on the legitimacy of the breakout, possibly resulting in a drop to $55.