- Litecoin value pulling again barely after nearing February excessive.
- Symmetrical triangle continuation sample stays stay.
- Weekly Relative Power Index (RSI) not overbought.
Litecoin value broke above the higher pattern line of the symmetrical triangle on April 3 and has adopted via this week, with value developing simply wanting the February excessive at $247.00. The delicate pullback close to the February excessive will not be uncommon and shouldn’t be a purpose to name the top of the rally categorically.
Litecoin value must command greater quantity to beat February excessive
Throughout a symmetrical triangle sample, quantity usually declines, and breakouts are typically to the upside. Within the case of LTC, the upside breakout initially struggled to achieve traction, nevertheless it has commanded extra assist this week as quantity is close to the weekly common with three extra days left within the week.
In an FXStreet article on April 1, it was projected that LTC was prepared for a 40% acquire from the symmetrical triangle breakout stage, and that outlook stays the thesis at present.
The worth motion on April 6-7 notes the significance of the February excessive to the bullish forecast. Merchants want to look at for a every day shut above the excessive to verify the rally will proceed to the triangle measured transfer goal of $294.20, producing a acquire of 31% from the present value.
Some resistance may unfold on the 61.8% Fibonacci retracement stage of the 2017-2018 bear market at $268.03. Nevertheless, merchants ought to put extra emphasis on the 78.6% retracement stage at $334.86 as a result of value congestion across the stage in late 2017.
LTC/USD weekly chart
Whereas issues look like bullish for the Litecoin value, merchants want to observe any additional weak spot, significantly at a retest of the triangle breakout. A failure to carry will instantly put the 10-week SMA at $197.13 in play, a assist stage that has held on a closing foundation since October 2020. A weekly shut under the transferring common will invalidate the bullish thesis and expose LTC to a decrease triangle pattern line take a look at.
If such a state of affairs involves fruition, the March low at $167.78 and the February low at $153.07 will likely be examined.