The price of Litecoin (LTC) has bounced off the long-term support line and shows signs of further upward movement in the near future.
Ascending support line
The price of Litecoin (LTC) has been rising along an ascending support line since November 7, 2022. The price has bounced off this line multiple times, most recently on May 8 (green arrow).
Subsequently, the price formed a morning star pattern (red ellipse). This is a bullish pattern that often indicates a continuation of the previous uptrend.
Indeed, the price formed a bullish pin bar candlestick in the following week, suggesting strong buying pressure at lower levels.
Therefore, LTC price is likely to rise towards the nearest resistance level at $100 and potentially higher towards $130.
The weekly RSI indicator supports this possibility as it has bounced off the 50 level, coinciding with the price bounced off the support line.
Short-term outlook
The daily chart shows that LTC is trading within an ascending triangle with a resistance level at $93 and support at $87.
This is a bullish pattern that often leads to breakouts in most cases. The price is currently trading at the resistance level of the triangle.
The daily RSI indicator supports the breakout potential as it has broken above the descending resistance line and is above 50.
If a breakout occurs, the next target is $100.
Conclusion
The most likely outlook suggests that LTC price will break above the current short-term pattern and rise to at least $100.
The bullish perspective may be invalidated if the price breaks below the support line of the ascending triangle at $87.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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