Published 4 hours ago
The Litecoin price has been rising for three consecutive weeks and is gradually approaching the $80 resistance. Under the influence of the cup and handle pattern, the coin price breached this monthly barrier which may offer a strong launchpad to buyers and continue the bullish recovery.
advertisement
Source- Tradingview
Litecoin Price Forms A Bullish Reversal Pattern
The Litecoin price shows the formation of a cup and handle pattern in the weekly time frame chart. This pattern resembles itself as shaped a normal teacup, but it is one of the most common bullish reversal patterns observed at market bottoms.
In theory, the U-shaped recovery during the formation indicates the buyer gradually taking trend control and carrying a sustained recovery. Moreover, this pattern has a key resistance level whose breakout would intensify the buying and provide an entry opportunity for investors.
Trending Stories
The Litecoin chart shows this resistance at $80, and in the ideal condition, it should drive a bullish rally to the $110 mark.
Also read: Here’s How Much Your $1000 Investment In Litecoin Will Be Worth If LTC Reaches $100
The $0.478 Stand As Crucial Support
Amid the recent uncertainty in the crypto market, the litecoin price has been walking a sideway strength for the past two months. However, during this consolidation, the prices rebounded from the $47.8 mark several times, indicating the buyers were obtaining sufficient support from it.
This support zone has also bolstered the cup and handle pattern mentioned above.
Bullish Divergence In RSI Indicator
The Relative Strength Index (RSI) indicator reflects the underlying strength of the price trend by calculating the speed and magnitude of recent price action. Thus, despite the sideways trend in litecoin, the weekly RSI showing evident growth indicates the rising buying pressure in the market.
This bullish divergence increases the probability of an upcoming recovery rally.
Current Price Action
Over the last two weeks, the Litecoin price rebounded from local support of $63.75 and surged 18.5% high. The recent new year recovery assisted buyers with this growth and pushed it to its current price of $75.6.
advertisement
Thus, with sustained buying, the LTC price may continue to rise and challenge the $80 neckline resistance of the cup and handle pattern.
- Resistance Levels: $80 and $101
- Support Levels: $63.7 and $47.8
Share this article on:
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- Platoblockchain. Web3 Metaverse Intelligence. Knowledge Amplified. Access Here.
- Source: https://coingape.com/markets/3-reasons-why-buying-litecoin-could-boost-your-portfolio-in-rarly-2023/
- $1000
- 1
- 10
- 2023
- 7
- 9
- a
- above
- Action
- and
- approaching
- article
- author
- avatar
- barrier
- Beauty
- before
- blockchain
- boost
- breakout
- Brian
- Bullish
- bullish divergence
- buyers
- Buying
- calculating
- carrying
- challenge
- Chart
- Coin
- Coingape
- COM
- Common
- condition
- consecutive
- consolidation
- content
- continue
- control
- could
- crucial
- crypto
- Crypto Market
- cryptocurrencies
- cryptocurrency
- Cup
- Current
- Despite
- different
- Divergence
- drive
- during
- Early
- Entertainment
- entry
- Ether (ETH)
- Fashion
- finance
- financial
- follow
- For Investors
- formation
- forms
- FRAME
- from
- gradually
- Growth
- handle
- High
- hold
- HOURS
- How
- However
- HTTPS
- ideal
- in
- include
- Including
- Increases
- index
- indicates
- Indicator
- influence
- investing
- investment
- Investors
- IT
- itself
- journalism
- Key
- key resistance
- Last
- Launchpad
- Level
- levels
- Litecoin
- Litecoin price
- local
- loss
- LTC
- ltc price
- mark
- Market
- market research
- mentioned
- monthly
- months
- most
- New
- new year
- normal
- obtaining
- offer
- ONE
- Opinion
- Opportunity
- past
- Pattern
- patterns
- personal
- plato
- Plato Data Intelligence
- PlatoData
- portfolio
- presented
- pressure
- price
- PRICE ACTION
- Prices
- provide
- Publication
- pushed
- rally
- Reaches
- Read
- reasons
- recent
- recovery
- reflects
- research
- resembles
- Resistance
- responsibility
- Reversal
- Rise
- rising
- rsi
- several
- shaped
- Share
- should
- Shows
- sideways
- speed
- stand
- strength
- strong
- subject
- sufficient
- support
- Surged
- taking
- The
- The Weekly
- three
- time
- times
- to
- Topics
- TradingView
- Trend
- trending
- Uncertainty
- under
- underlying
- upcoming
- variety
- walking
- weekly
- Weeks
- which
- will
- working
- worth
- would
- written
- year
- years
- Your
- zephyrnet