The Litecoin (LTC) price broke out for the second time from the $72.50 resistance area on Jan. 2. As long as it is trading above the area, the trend can be considered bullish.
Charlie Lee created Litecoin on Oct. 7, 2011. The cryptocurrency is similar to Bitcoin due to it being on its protocol, but it is designed to provide faster transactions.
The Litecoin price recovered admirably since its June 2022 lows and is currently trading 84% above them. The ongoing breakout is a positive sign for the future price.
Litecoin Successfully Breaks Out
The Litecoin price has increased alongside an ascending support line since June 10. On Nov. 9, the LTC price bounced after falling to a minimum price of $47.60 (green icon) and created a bullish engulfing candlestick the next day. This accelerated the upward movement and led to a maximum price of $85 on Dec. 5.
Afterward, the ensuing sharp drop indicated that the breakout was not legitimate since the LTC price fell below the area once more. However, Litecoin moved above $72.50 once more on Jan. 3. It is currently in the process of validating the area as support.
If successful, the LTC price could increase toward the next resistance at $130. On the other hand, a daily close below the $72.50 area would likely send the Litecoin price back to the ascending support line at $58.
The daily RSI supports the continuation of the upward movement. The indicator has moved above 50 and broke out from its bearish divergence trend line (black line). This is a sign that often precedes upward movements.
Therefore, the most likely Litecoin price prediction for Jan and beyond is a continuation of the upward movement toward $130. A daily close below $72.50 would invalidate this bullish price forecast.
Litecoin Price Prediction For Jan – $100 Incoming?
The technical analysis from the weekly time frame aligns with the daily one. It shows that both the price and the weekly RSI have broken out from descending resistance lines. Moreover, the weekly RSI has moved above 50, a sign of a bullish trend.
Finally, the main resistance area in the weekly time frame is at an average price of $130, aligning with that from the daily one.
So, the weekly time frame readings provide a bullish Litecoin price analysis supporting the possibility of an upward movement.
To conclude, the most likely Litecoin price forecast is an upward movement toward the $130 horizontal resistance area. A daily close below $72.50 would put this bullish LTC price analysis at risk.
For BeInCrypto’s latest crypto market analysis, click here.
BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
Compiled by Metacrunch. Metacrunch is a news complier and aggregator platform which aims to spread awareness and updates on Metaverse, Web 3.0 Technology, Blockchain, Cryptocurrency, NFTs, Airdrops and many more.
Source link .