Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
Litecoin was traversing through some tricky waters after a breakout from a bullish pattern. A daily close above the confluence of the 50-SMA (yellow) and the $170 ceiling would allow for a retest of the formidable resistance close to $190.
A comeback to $233 would be a possibility as long as LTC is able to overcome its 200-SMA (green) with conviction.
At the time of writing, LTC was trading at $173, up by 4.7% over the last 24 hours.
Litecoin Daily Chart
Source: LTC/USD, TradingView
Litecoin’s price has been pushing higher on the back of an upwards breakout from its parallel channel. The formation of ‘three white soldiers’ on the daily chart highlighted a strong change in market sentiment after the prior downtrend. Even though a period of consolidation seemed to be in effect, the bullish bias was still active as LTC tested its $170-resistance.
Now, according to the Visible Range, LTC would face a ton of selling pressure between $180-$190 going forward. If buyers are able to overcome these price levels, LTC can cut through to $233 with relative ease. The lack of strong price ceilings above $190 would work in favor of the buyers who will face little to no counter resistance from the opposing end.
From there, the spotlight would be on $245 and $280 as long as the 200-SMA (green) does not hinder LTC’s trajectory. In case sellers do punch back between $190-$180, expect a retest of $140 and a potential double bottom formation.
Reasoning
The Relative Strength Index traded above the mid-line. There seemed to be more room for growth before the overbought territory is breached. However, till the Awesome Oscillator and MACD make their way above their equilibrium levels, expect buyers to be relatively cautious of near-term hurdles.
Conclusion
A breakout above $170 would push LTC between the resistance zones of $180 and $190. Negotiating past a huge chunk of selling pressure could push LTC all the way towards $233.
Overall, this represented a 33% jump from LTC’s press time level.
