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Analysis

What is the best-case scenario for Litecoin’s price action

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Source: Pixabay

Disclaimer: The findings of the following article are the sole opinions of the writer and should not be taken as investment advice

Litecoin has done well to recover from a broadening wedge setup on its chart. Following its decline, buyers re-entered the market around the $160-mark and pulled the price up from its weekly lows. The near-term outlook seemed to be bright once again as key indicators underwent some resets.

Moreover, the alt could register sharper gains over the next 24 hours if it closes above an important resistance zone. At the time of writing, Litecoin was valued at $176, up by 6% over the last 24 hours.

Litecoin 4-hour chart

Source: LTC/USD, TradingView

The rebound from $162 saw successive green candles line up on LTC’s 4-hour chart. Two June swing highs – One at $180 and the other $185 – now presented the next challenge for Litecoin. A successful close above these levels would propel the alt towards its local high of $190, representing another 7% hike from LTC’s press time level.

On the contrary, a failed breakout attempt would likely see LTC move sideways just below the $180-level.

Reasoning 

The indicators were quick to respond to a LTC’s reversal and presented a favorable tone. The MACD pictured a bullish crossover as buying pressure ramped up over the last few sessions.

The Relative Strength Index formed a double top, favored the bulls, and climbed back above 50. The Awesome Oscillator eyed a comeback above the half-line – Something that would present a buy signal to the market.

Conclusion

There was a lot to be optimistic about with respect to Litecoin’s near-term outlook with just a little downside. The best-case scenario would be a hike towards $190, in case the price closes above certain swing highs.

Conversely, some sideways action is also possible in case LTC’s immediate resistance level prevents further upside.

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A business graduate with a keen interest in emerging markets across South East Asia. As a financial journalist, he covered stocks and market reports across Australia and New Zealand as well.