Litecoin (LTC) Eyes February Revival Following Slow Start to the Year

The Litecoin (LTC) price has traded above a long-term ascending support trend line for more than 600 days.

LTC trades inside a short-term bullish pattern, a breakout above which can accelerate the upward movement.

Litecoin Bounces at Long-Term Support

The weekly time frame technical analysis shows the Litecoin price has increased alongside an ascending support trend line for more than 600 days. More specifically, the support trend line has existed since June 2022, when LTC had fallen to a low of $68. 

The LTC price bounced at the trend line five times in the past six months (green icons), creating long lower wicks each time. Furthermore, the bounces validated a long-term horizontal support area.

Despite the bounces, LTC has yet to increase significantly above the area.

The weekly Relative Strength Index (RSI) does not confirm the upward movement yet.

When evaluating market conditions, traders use the RSI as a momentum indicator to determine whether a market is overbought or oversold and whether to accumulate or sell an asset.

If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true. While the indicator is increasing, it is still below 50, indicating an undetermined trend.

What Are Analysts Saying?

Cryptocurrency traders and analysts on X positively view the future LTC trend.

Trader Sam believes LTC is the most underrated cryptocurrency of this bull run.

MoneyMazin suggests the LTC price will increase significantly due to the bounce at the long-term horizontal support area. It is also worth noting that Litecoin (LTC) has processed over 20 million transactions in 2024.

LTC Price Prediction: Breakout or Breakdown?

The daily time frame chart shows that LTC has increased alongside a short-term ascending support trend line since August 2023. Combined with a previous horizontal resistance area at $72, this creates an ascending triangle, considered a bullish pattern.

The LTC price deviated above this horizontal area several times in the last few months but did not sustain the upward movement.

Nevertheless, the RSI recently increased above 50, potentially suggesting a breakout will ensue. If one occurs, LTC can reach the 0.618 Fib retracement resistance level at $93, 33% above the current price.

Despite the bullish LTC price prediction, a daily close below the ascending support trend line will invalidate the breakout. Then, the LTC price can fall 40% to the closest support at $42.

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The post Litecoin (LTC) Eyes February Revival Following Slow Start to the Year appeared first on BeInCrypto.

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