- More than 30% growth in the last 12 days has brought the breakout of a double bottom candlestick pattern and a significant resistance level of $240
- The sudden growth could impact the LITECOIN-backed Exchange-Traded Product launched by COINSHARE
- The potential rise of LTC price is expected up to $300
Litecoin price recently made a big green candlestick marking the breakout of a double bottom candlestick pattern along with the major resistance level of $240. A retest is expected near $245. The price is above the 50 EMA (yellow) above the 200 EMA(White), implying an uptrend in the daily timeframe. The market capitalisation of LTC is $17,074,072,064 (-0.38%) and the 24-hour volume is $5,722,254,819 (-26.22%).
ROAD TO $300 IS NOT EASY
After growing 30% in the last 12 days, LTC price is now retracing the steps back to its support trend line in the 4-hour timeframe. This retracement is also the retest of the breakouts previously described. So the bounce-back of the price from this trend line could give rise to a substantial uptrend. The price also gave an ascending triangle candlestick pattern breakout for which the retest is awaited. The uptrend could bring prices above $300, but if the trendline fails to provide support, 200 EMA is the last resort to get the price close to $300. As seen in the chart,
the decrease in volume is an indication that bulls are sloping and waiting for a better entry opportunity. Also, the buying volume seems to be much higher than the selling volume implying that bulls could enter any moment again.
In the 4hour timeframe, 50 EMA (yellow) provides constant support, and the trend line above the 200 EMA (white) symbolizing the uptrend in play.
The relative strength indicator (bearish) at 67.5 stands with the bears for now, in the overbought region. The current slope is heading higher towards the overbought region, conveying a hint for a small downtrend.
The expected uptrend could start after the retest on mentioned levels. However, the price could dip with the retest giving no chance for an up move. In such a case, 200 EMA will be the last resort for traders with bullish sentiment for LTC.
Support- $170 and the mentioned EMAs
Resistance – $260