A crypto analyst predicted this the Litecoin price is gearing up for an explosive rally to $110. Unlike Bitcoin and Ethereum, which have seen that significant declines According to CoinMarketCap, Litecoin appears to be stabilizing in recent months and is up about 7.8% over the past week. Although LTC has seen its fair share of declines this year, analysts are still hopeful that the cryptocurrency could cross the $100 threshold and regain previous highs.
Litecoin price aims for a breakout of $110
Litecoin could be that prepare for a strong upward movementaccording to a new analysis from TradingView market expert MadWhale. The analyst has indicated that the cryptocurrency has the technical structure necessary to break out of the long run descending channel and possibly rise to $110. With the current price around $83, a rise to this level would represent a significant rally of 33%.
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MadWhale has based its bullish LTC prediction on weekly candlesticks and how the cryptocurrency has consistently reacted to previous support and resistance levels. He explained that the altcoin was stuck in a descending channel that has been controlling the price for several weeks now. According to the TradingView analyst, Litecoin is now approaching the upper resistance area of the descending channel – a point where traders usually look for a clear breakout or a sharp reversal.
The analyst’s price chart shows Litecoin’s support zones have repeatedly held out, showing that buyers consistently defended the area. Due to this steady support, he expects Litecoin’s rebound near the upper resistance of the descending channel to build momentum. If support holds, MadWhale suggests the cryptocurrency could rise to $110, completing the breakout from the descending channel.
A breakout could signal a significant shift, potentially turning Litecoin’s recent downtrend into a new bullish phase. MadWhale’s chart also highlights the volatility of the cryptocurrencyThis shows that LTC was up about 33.84% to above $120 by early October. However, just days later it crashed by more than 17%, coinciding with the October 10 liquidation event that shocked the market.
Update on LTC price action
Litecoin is about 79% below its all-time high of over $410 recorded during the period the running of the bulls of 2021. The cryptocurrency is down 17.68% in the past week and is down 33% this year. the broader decline we are seeing in altcoins. Despite its achievements, LTC’s Fear and Greed Index stays in the neutral zone, indicating that crypto investors are cautiously optimistic.
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According to market analyst CW on Once the cryptocurrency reaches this level, CW expected a significant number of vendors to sell their coins. His chart also highlights the next major resistance levels for LTC, indicating a potential rise to first $98 and then to the $106-$110 range.
Featured image from Adobe Stock, chart from Tradingview.com