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Litecoin price held steady and retested the crucial resistance level at $100. LTC has jumped for three consecutive weeks and is now hovering at its highest level since April 2024. It has soared by over 100% from its lowest point this year.
Litecoin price technicals suggest a parabolic move is coming
LTC price has surged because of the ongoing crypto bull run, with Bitcoin flirting with the key point at $100,000.
The weekly chart suggests that Litecoin price is about to go bonkers in the coming weeks, especially if the bull run in the crypto space continues.
This chart shows that the coin formed a triple-bottom pattern at $57.90 in August 2023 and January and August this year. This pattern forms when an asset fails to move below a key support level three times and is usually a sign that bears are afraid of shorting it below that point.
Litecoin is now hovering near the neckline of this pattern at $112. In most periods, a strong bullish breakout is usually confirmed when an asset makes a strong bullish breakout above the neckline.
A price target is usually established by measuring the distance between the neckline and the triple-bottom point. In this case, this distance is about 95%. Therefore, if the coin replicates this trend, there are chances that it will rise to $220. This is an important level that coincides with the 61.8% Fibonacci Retracement level.
Further supporting the bullish view is the fact that Litecoin price has just jumped above the 50-week and 200-week Exponential Moving Averages (EMA) and the two may form a golden cross pattern in the near term. In most cases, a golden cross leads to more gains since it is usually a confirmation of a bullish breakout.
Read more: Bitcoin has zoomed past $99,000, will BTC hit $100k milestone today?
LTC price daily chart is more encouraging
Meanwhile, looking at the daily chart, we see that the coin formed an inverse head and shoulders pattern whose head was at $50 in September. This is a popular pattern that is often a sign of a reversal.
LTC price has also formed a golden cross signaling that bulls are in control for now. Also, the coin is attempting to move above the key resistance level at $98.42, its highest level on November 16. A move above that level is a sign that it has invalidated a double-top pattern.
Therefore, the short-term outlook for the price of Litecoin is where it rises and retests the highest point this year of $112.6. This is a notable level since it is the extreme overshoot of the Murrey Math Lines indicator. It is also the upper side of the forming cup and handle pattern, a popular continuation sign.
Some crypto analysts are more bullish on the LTC price. In a note, one analyst known as Twoface, said that the coin was preparing a massive 8,000% rally, citing its performance in the last crypto bull run.
Litecoin has numerous catalysts
There are several catalysts that could push LTC price sharply higher. First, data shows that Litecoin’s hash rate has jumped to a record high. It has a rate of 1.44 Phash/s, much higher than where it started the year at. Hash rate is an important metric that looks at the health of a proof-of-work coin.
Second, Litecoin is seen as a cheaper alternative to Bitcoin, whose price is nearing $100,000, making it highly unaffordable to most traders. If its rally continues, there are chances that it will have a spot ETF in the coming months.
Third, Litecoin, unlike Bitcoin, is widely used in payments because of its faster speeds and lower transaction costs. Also, the coin is benefiting from the ongoing greed in the crypto market, which is a sign of risk-on sentiment.
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