All the altcoins are forming a similar pattern due to Bitcoin’s pitless sell-off, there is a sharp dip followed by sideways movement and another dip. In the case of Litecoin, there is a bullish up channel being formed. The general breakout trend from this would be bullish for Litecoin. Hence, on the lower time frame, Litecoin seems bullish.
With the price of one Litecoin worth $35 and a total market cap at $2.17 billion, the sixth-largest cryptocurrency in the world is struggling to end its downfall. However, bitcoin dominance seems to be at a higher level (64% at the time of writing).
- The price in the bullish up channel is almost ready to breakout. A bullish breakout would take the price higher by a maximum of 20% and a minimum pump of 7.6%.
- Although the outlook is bullish, there needs to be a drop in price to the center of the channel before surging higher. Holding the center of the parallel channel is most important.
60-Minute Litecoin Chart
Litecoin on the 60-minute time frame looks bullish with the formation of a bullish up channel with a minute slope. Without this minute slope, the channel would have been flat with sideways price movement.
Further, the price, at the time of writing, was above the center of the channel. which tends to act as resistance. Due to this, the price is on its way to the upper band of the channel, however, it is being faced with another sloping resistance (seen in red).
Further, there might be a bounce from either the sloping resistance or the upper band of the parallel channel, causing the price to touch the center band. The price’s bounce from here would be crucial, for LTC to surge by 7.36% to 20% to reach its targets. A 7.36% surge from the centerline would put Litecoin at $35.01 but a 20% surge would put the price at $38.96.
However, a drop from the center band of the channel would prove to be a disaster pushing the price to $29 at the lower end of the channel. The wave trend indicator has reached close to the overbought zone, indicating an incoming drop (to the center band of the channel) as mentioned above.
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