Litecoin price bounces off $230 as bulls target 3-year resistance

If LTC resumes upside and breaks above resistance close to $238, a breakout above one other key resistance zone might see bulls assault $300 or increased

Litecoin (LTC) is trying to bounce off assist at $230 and goal short-term resistance at $238. This follows a dip to lows of $220, which got here after bears rejected bullish advances on the aforementioned zone. LTC is prone to bounce increased given the technical image on the day by day and 4-hour charts.

On the time of writing, Litecoin is buying and selling at $234, barely up over the previous 24 hours by round 2.5%. The cryptocurrency, presently ranked eighth by market cap, is nevertheless stronger over the week because it stays 27% within the inexperienced zone.

Litecoin value upside image

Litecoin value broke above resistance at $229 after its rejection close to $240 despatched it tumbling to $220. A transparent break above the rapid resistance zone at $239 will seemingly see the LTC/USD pair transfer in direction of a three-year excessive. Past that, bulls will goal the all-time excessive of $375.

The day by day RSI and MACD recommend bulls have room to maneuver to the above targets.

Because the day by day chart reveals, the horizontal resistance line round $239 is the principle hurdle earlier than a possible retest of $273, a value degree marked by the 0.618 Fibonacci retracement degree of the transfer from $375 peak to $25 low.

If bulls achieve breaching that barrier, the subsequent goal could possibly be the psychological $300 after which the 0.786 Fibonacci retracement degree ($340). Attaining this milestone would put $375 into focus, which is Litecoin’s all-time excessive reached on 19 December, 2017.

The 4-hour chart suggests a retest of the $240 hurdle is much more seemingly, with LTC buying and selling increased inside a contracting rising wedge sample.

The pair can also be trying to validate a short-term bullish break from a descending pattern line. A transparent break to the upside might place Litecoin’s value close to $246, and see bulls goal the aforementioned ranges on the day by day log.

The 4-hour MACD is suggesting a hidden bullish divergence, whereas the 4-hour RSI is rising in direction of the overbought territory. This can be a continuation outlook that means a stronger transfer is on the playing cards.

According to crypto analyst and dealer Michael van de Poppe, Litecoin is undervalued and will surge to $450-$700 this summer season.

“#Litecoin is closely undervalued in comparison with #Bitcoin. That’s what you derive from the $BTC pair. Subsequent to that a powerful quantity of quantity lately and robust bullish divergences. I’m anticipating $LTC to run to $450-700 in Could-July.”

Litecoin value draw back transfer

A bearish reversal may floor if Litecoin value drops beneath assist on the decrease pattern line of the contracting rising wedge. It will seemingly see LTC dip beneath $230 once more, with the 50-day easy shifting common (4-hour) offering assist at $211.

Any additional losses might see costs decline as little as assist at $180 within the brief time period.