Litecoin presents possibilities a 15% bounce following an ascending triangle setup on its chart. The RSI, MACD and DMI underpin LTC’s ascent and current no correctional threats transferring ahead. Ought to LTC register a decisive shut above $205, September’s native excessive of $224 may very well be its subsequent vacation spot. On the time of writing, LTC traded at $200.9, up by 4% over the past 24 hours.
Litecoin 4-hour Chart
Supply: LTC/USD, TradingView
Litecoin’s ascending triangle got here to gentle after the value fashioned larger lows at $177, $186 and $192, whereas snapping two highs at $204. Now, as LTC approached the higher trendline of its triangle, the candles traded above their 4-hour 20-SMA (purple), 50-SMA (yellow) and 200-SMA (inexperienced). With momentum aiding the shopping for aspect, LTC was in prime place to register a breakout from this bullish sample.
A convincing shut above $205 may permit LTC to take flight all the best way in direction of September’s excessive of $233. This indicated a 14% bounce from the breakout level of $205. A possible throwback to the higher trendline may also be triggered on the 78.6% Fibonacci stage, however such a growth would solely lend credence to a extra natural rally.
On the flip aspect, uncertainties might start to creep in ought to LTC weaken beneath $233 following the throwback. The area between the 16.8% and 50% Fibonacci ranges may present aid throughout a correction.
Reasoning
Potentialities of a profitable breakout have been backed by a rising MACD, RSI and Directional Motion Index. The RSI marked an finish to its downtrend after flipping its higher sloping trendline to bullish. All that remained was for the ADX to comply with go well with, which presently indicated a weak directional development following a studying of 14.
Conclusion
All 3 indicators used flashed favorable readings as LTC eyed an ascending triangle breakout. Merchants can arrange lengthy trades as soon as LTC closes above $205. Take income might be set at $233 and stop-losses at $197, just under the 61.8% Fibonacci stage.
