Litecoin (LTC) regains its foothold and targets new heights
Litecoin’s price is facing resistances located at $ 238, $ 296 and $ 371.
LTC rebounded to the support area located at $ 192.
LTC / BTC could be approaching a trend reversal.
Litecoin (LTC) price declined slightly after being rejected by long-term resistance at $ 238 last week.
Despite this rejection, Litecoin’s trend still appears to be on the rise. Price is expected to attempt to break through resistance again shortly.
Litecoin’s long-term resistances
Litecoin rose significantly over the past week, creating a bullish candlestick with a high at $ 230.
This high was just below the resistance at $ 238 formed by the 0.618 fibonacci retracement level. LTC has not traded over this area since February 2018.
If it manages to regain resistance, the next one is likely to be found at $ 296 (fibonacci retracement level 0.786). Above it is its all-time high of $ 371 as final resistance.
Despite a potential bearish divergence in the Weekly RSI, the MACD, Stochastic Oscillator and Bitcoin Evolution are on the rise. This tells us that the trend is probably still bullish.
The daily chart shows that the decline on February 15 was another test of the $ 190 zone, which left a long lower wick (green arrow). This is a bullish sign, suggesting a further rise in the LTC.
Similar to weekly data, the MACD, Stochastic Oscillator and RSI are on the rise
This new test is even more glaring in the six-hour data, and is also combined with a hidden bullish divergence in the RSI. This is a strong sign of continuing the trend.
If LTC crosses its potential descending resistance line (dotted line), the rate of rise should accelerate.
The wave count suggests that LTC is in sub-wave five (in orange) of wave three (in white) of a bullish pulse that started in March 2020.
The most plausible target for the top of this move is found at $ 259. It is obtained by using a fibonacci projection (in orange) as well as the external fibonacci retracement level 4.16 (in black).
The second most plausible area for this top would be the $ 296 resistance mentioned in the first section.