As the crypto market has suddenly shifted into bullish gears, Litecoin is on the verge of starting the new altcoin season. With an intraday surge of 5.82%, Litecoin is close to surpassing its critical resistance level. With a potential breakout, Litecoin could rise to $165 in the next couple of days.
Is this the start of Litecoin’s rally towards the $2,000 psychological mark? Let’s find out.
LTC Price Action: Inverted Head and Shoulders Formation
In the daily chart, the LTC price trend reveals a lateral shift. The two crucial parallel boundaries of the consolidation range are at the $100 psychological mark and the overhead ceiling at $138.
Currently, Litecoin trades at $137, creating its second consecutive bullish candle. Yesterday, Litecoin’s price surged by 6.01%, followed by an intraday surge of nearly 6%. This propels Litecoin by nearly 12% in the past two days. With a bullish comeback from the 38.20% Fibonacci level at $121, Litecoin is challenging the overhead ceiling.
The overhead ceiling coincides with its 61.80% Fibonacci level at $138. With a new bullish engulfing candle, Litecoin has overcome the previous swing high, presenting a potential breakout rally.
Along with the range breakout, Litecoin also presents the possibility of an inverted head and shoulders pattern breakout rally. The neckline of this extremely bullish pattern coincides with the $138 supply zone. Hence, the Litecoin rally is on the verge of creating a new bullish trend.
Supporting the bullish chances of recovery, the technical indicators maintain a positive stand. The exponential moving average (EMA) lines in the daily chart maintain a positive alignment.
Furthermore, the MACD and signal lines maintain a bullish trend with a surge of green histograms. Hence, the technical indicators support the bullish chances without any divergence.
Litecoin Price Targets: How High Can It Go?
As per the trend-based Fibonacci level, the breakout rally in Litecoin is likely to surpass the $150 psychological mark. This will put the nearly $165 resistance level on the bullish radar.
On a longer timeframe, the 1.618 Fibonacci level at $208 is a potential bullish target. This highlights the massive potential of more than 50% in Litecoin.
On the flip side, the crucial support levels for Litecoin are at $129 and $121.