- Litecoin spiked over 12% previously 24 hours earlier than correcting once more.
- The bullish impulse got here after LTC breached the $139 resistance degree.
- Now, this cryptocurrency is primed to advance to $187 however could supply sidelined traders a possibility to get again into the market.
Share this text
Litecoin appears to be breaking out of a three-week-long consolidation interval, however a selected technical indicator factors to a correction earlier than it advances additional.
Litecoin Primed to Regain Misplaced Floor
Litecoin took a 39% nosedive to hit a low of $113 just a few hours after peaking at a excessive of $185 on Jan. 10. Since then, this cryptocurrency entered a consolidation section the place its worth made a collection of decrease highs whereas the $120 assist degree was capable of reject any additional downward strain.
Such worth conduct appears to have shaped descending triangle on LTC’s 4-hour chart.
As purchase orders started to pile up behind Litecoin on Jan. 2, its worth was capable of break via the triangle’s hypotenuse at $139. The spike within the shopping for strain has pushed LTC’s market worth by greater than 12% previously 24 hours, however the bullish impulse is much from over.
By measuring the gap of the triangle’s widest vary and including it to the breakout level, it forecasts that Litecoin is prime to rise one other 22% to hit a goal of $187.
A Small Correction Earlier than Larger Highs
However first, the Tom Demark (TD) Sequential indicator means that this altcoin will retrace earlier than it achieves its upside potential. This technical index offered a promote sign within the type of inexperienced 9 candlesticks inside the similar time-frame, forecasting a one-to-four 4-hour candlesticks correction.
A glimpse at Litecoin’s 4-hour chart exhibits that the TD setup has been extremely correct at anticipating native tops on this altcoin’s pattern. The final three promote alerts offered over the previous few weeks have been validated, leading to substantial pullbacks.
IntoTheBlock’s In/Out of the Cash Round Value (IOMAP) mannequin reveals that Litecoin sits on prime of an enormous demand barrier. Primarily based on this basic indicator, over 128,000 addresses had beforehand bought greater than 5.30 million LTC between $136.30 and $141.20.
As such, additional worth depreciation could show difficult given the energy of this assist wall.
It’s value noting that based mostly on the IOMAP cohorts, there aren’t any vital hurdles forward of Litecoin which will stop it from advancing additional. Due to this fact, a possible pullback might function a buy-the-dip alternative for sidelined traders that propels LTC in the direction of the triangle’s goal at $187.
Disclosure: On the time of writing, this creator owned Bitcoin and Ethereum.
Altcoin Dominance Rising: Ethereum Leads, XRP and Litecoin Lag
Altcoin dominance broke above a significant resistance level, suggesting a further advance. The upswing could indicate the beginning of a new “altseason.” Altcoins Could Gain Significant Market Share At the…
Looking Back on 2020 and 2021 Predictions
Happy New Year from all of us at Crypto.com Research! 2020 was an unprecedented year for the world and for crypto. Before we fully plunge into 2021 predictions, we will…
Altcoin Rally Unlikely As Institutions Stick To Bitcoin
Hopes for an upcoming altcoin rally are getting fainter by the day. Institutions are continuing to drive the cryptocurrency market, according to new data, and they’re almost entirely focused on…