- The LTC is facing resistances of $185 and $225.
- The wave count suggests that the LTC has started an upward momentum with its March 2020 low.
- The LTC/BTC pair faces resistance at 0.008₿.
On January 4, Litecoin peaked at $173. It hadn’t risen to this level since 2018.
Although it can continue to rise until it reaches the $185 resistance level, it seems that the current rally is at its peak, and that a corrective movement will start soon.
Long-term movement of the LTC
The weekly chart shows that LTC finally surpassed its June 2019 highs at $145, closing the week above this area.
If the price continues to rise, the next resistances will be at $186 and $225, the fibonacci retracement levels 0.5 and 0.618.
Technical indicators are bullish, supporting the possibility of a further advance and a gradual rise towards the highlighted resistances.
Cryptocurrency trader @Pentosh1 presented a chart, stating that once the price has overcome the final $140 resistance, a considerable upward movement is likely to follow.
Since his tweet, the LTC has surpassed this same area and should continue to rise.
Continuity of Movement
The daily chart shows signs of weakness in the form of a bearish divergence in the RSI. However, both the MACD and the Stochastic Oscillator are bullish.
Due to the sharp upward momentum, there is no significant support zone. The nearest support zone is at $120.
The two-hour chart shows signs of continuity in the form of hidden bullish divergences within the RSI. Combined with the long lower strand, this suggests that the Bitcoin Machine could probably go up.
LTC Wave Count
The wave count suggests that the LTC has started a bullish momentum (blank below) with its March 2020 low. It is currently near the peak of its third wave, which has been extended. The sub-wave count is shown in orange.
Thus, although LTC may increase in the short term to a peak close to the $185 resistance outlined in the first section, a correction will likely follow.
The weekly chart shows that both the RSI and the MACD have formed bullish divergences since the beginning of April 2020, despite the price decline. The LTC has recovered from its low of 0.0036₿ on November 12.
If the LTC/BTC pair resumes its upward movement, the next resistance zone would be at 0.008₿.
In conclusion, although the LTC can potentially resume its movement towards the $185 zone, it is high time it entered into correction. For its part, the LTC/BTC pair looks bullish in the long run.