Litecoin Price Analysis: LTC/USD Scheduled for Flight Back to $50

  • LTC/USD is running in its third consecutive week of trading in the green.
  • The next major area of interest for the bulls is likely to be $50-55.

The Litecoin price remains very much elevated at the time of writing on Monday. Market bulls are maintaining the recent renewed momentum that had come back into play just last week. LTC/USD is now running at three consecutive weeks in the green.  This coming after a rebound was staged on week commencing of 10th December, where a reversal doji had formed. This clearly solidifies the change in trend after a year of bears being firmly in the driving seat.

Fast Highway to the North

LTC/USD 4-hour chart. Price action moving within an ascending channel formation.

LTC/USD from the 16th December, has formed an ascending channel formation. This has been supporting the price in its fast move to the upside. As a result, Litecoin has gained well over 40% from moving within this channel – initially being as low as the $25 territory to rally up to recent highs at $37. That’s the highest level obtained since the back-end of November, which at the time was still very much within the midst of the market sell-off.

Key to Further Upside

LTC/USD daily chart. Near-term supply zone needs to be broken by bears, $35-38 area.

The upper trend line of the above detailed ascending channel has temporarily slowed the bulls down. Resistance is tracking around $37.50 heading into the $38 mark, which has been demonstrated Monday. In order for there to be another wave of buying pressure, the bulls must breakdown supply, observed from $35-38. This is an area that saw active sellers preventing the price from moving back above, between November to early December.

Bull Targets

Should upside momentum pick up intensity, an extension through the channel and above the detailed supply area would likely be seen. The next target area of interest would then be the big $50 price region. LTC/USD has not traded here since the 14th November, during the intense selling pressure of that month. The price had been range-trading through much of October to November, swinging between $50-$55. To see a return initially here for the bulls would make most sense.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.