Litecoin’s price has faced a critical support test, as the cryptocurrency suffered a 10% decline in June and a challenging start to July. Despite a surge in network activity, LTC bulls have struggled to capitalize on the momentum.
However, there is hope for Litecoin’s price as it tests the support of a bullish technical setup known as the ‘ascending triangle.’ This pattern, which indicates a consolidation period where buyers gradually gain strength against a consistent level of resistance, could potentially lead to a bullish breakout if the trendline is not invalidated.
The volume analysis is crucial in validating the strength of the breakout, as a surge in volume near the triangle’s apex is a key indicator of a robust breakout. According to technical analysis, if the bullish pattern pans out, the theoretical price target for LTC is near $269.5, representing a 267% spike from current levels.
Despite the positive setup, Litecoin’s price has struggled to conquer the 20-day EMA dynamic resistance since June 8, with prices dropping nearly 6% to a daily low near $72 on July 3. A sustained rally could see LTC price rise to the 50-day EMA resistance near $78 and potentially reach the resistance near $85. However, a continued fall could invalidate the pattern and lead to a test of support near $69, with a potential further drop to the support near $63.8.
The RSI for LTC remained neutral, with a score of 41.86 on the daily charts. All eyes are on Litecoin’s price as it navigates these critical support levels in the coming days.