Hello traders! After LTC/USD bottomed out, nearly testing the key psychological level at $40.00, the price started to move up, producing higher highs and higher lows.
Currently, it seems that the bullish pattern is in place, especially considering the breakout of the downtrend trendline and the ascending channel. Since the Litecon found the resistance near $60.00 and rejected the upper trendline of the extended ascending channel, the correction down followed. Right now, LTC is rejecting the previously formed supply/demand zone, near $51.00, where 200 EMA is also providing support for the price.
This is certainly an area of interest for buyers, but only if will continue to be respected, with no clear breakout below the $50 psychological support. If this will remain to be true, the price should be expected to rise towards the $62.00 resistance area which is confirmed by 38.2% and 361.8% Fibonacci retracement levels as per the chart below. At the same time, this resistance corresponds to the top of the extended ascending channel, which suggests that the price could be on the fast rise.
Nonetheless, further consolidation might take place before/if the uptrend will continue. LTC/USD can even produce large spikes below the $50 support area. Although, only a break below the $48 will completely invalidate the bullish forecast and the price can be expected to continue trending down.
Bias: Strongly bullish while above $48
Potential Support Zone: $48 – 50
Potential Targets: $62
Have a profitable trading!