December 6, 2022

Litecoin Poised to Retrace Before Entering New Uptrend

3 min read

Litecoin seems to be breaking out of a three-week-long combination period, but a specific technical indication points to a correction prior to it advances further.

Litecoin Primed to Regain Lost Ground

Litecoin took a 39% nosedive to hit a low of $113 a few hours after peaking at a high of $185 on Jan. 10. Ever since, this cryptocurrency entered a debt consolidation stage where its rate made a series of lower highs while the $120 support level had the ability to reject any more down pressure.

Such price behavior appears to have formed coming down triangle on LTC’s 4-hour chart.

As buy orders began to pile up behind Litecoin on Jan. 2, its rate had the ability to break through the triangle’s hypotenuse at $139. The spike in the buying pressure has actually pressed LTC’s market price by more than 12% in the previous 24 hours, but the bullish impulse is far from over.

Litecoin US dollar price chart
LTC/USD on TradingView By measuring the range of the triangle’s widest variety and adding it to the breakout point, it forecasts that Litecoin is prime to increase another 22 % to strike a target of$ 187. A Small Correction Before Higher Highs However first, the Tom Demark(TD )Sequential indicator recommends that this altcoin will retrace prior to it accomplishes its upside potential. This technical index provided a sell signal in the type of green 9 candlesticks within the exact same amount of time, forecasting a one-to-four 4-hour candlesticks correction.

A look at Litecoin’s 4-hour chart shows that the TD setup has been incredibly accurate at preparing for local tops on this altcoin’s trend. The last three sell signals presented over the previous few weeks were verified, leading to considerable pullbacks.

Litecoin US dollar price chart
LTC/USD on TradingView IntoTheBlock’s In/Out of the cash Around Price(IOMAP)design reveals that Litecoin sits on top of an enormous demand barrier. Based upon this essential indication,

over 128,000 addresses had formerly purchased more than 5.30 million LTC in between $136.30 and$ 141.20. As such, more cost depreciation may show tough given the strength of this support wall.

In/Out of the Money Around Price by IntoTheBlock
< img loading="lazy" class="wp-image-79200 size-full" src="" alt="In/Out of the Money Around Price by IntoTheBlock

” width=”2106″ height=”728″ srcset=” 2106w,×300.png 868w,×354.png 1024w,×265.png 768w,×531.png 1536w,×708.png 2048w” sizes =” (max-width: 2106px) 100vw, 2106px” > In/Out of the cash Around Price by IntoTheBlock It is worth noting that based on the IOMAP mates, there aren’t any considerable hurdles ahead of Litecoin that might prevent it from advancing further. For that reason, a prospective pullback might function as a buy-the-dip chance for sidelined financiers that moves LTC towards the triangle’s target at $187.

Disclosure: At the time of composing, this author owned Bitcoin and Ethereum.