Litecoin just broke through a key price level that’s been holding it back for a while. After breaking through, LTC’s price came back down to test that same level and held strong. Prominent analyst Anup Dhungana pointed this out on X (formerly Twitter): “Looks like #Litecoin Breakout and Retest done!”. This could signal the start of a new upward trend for Litecoin.
LTC Chart Analysis: Breakout from Multi-Year Pattern Observed
Looking at Litecoin’s chart, we can see it broke through a long-term pattern—a descending triangle that’s been in place for years. This triangle had lower highs at the top and a support line catching the lows at the bottom. When prices break through these patterns, it often leads to strong moves.
Recent action shows Litecoin’s price moving decisively above the resistance line, marking a potential trend reversal. Following the breakout, the price tested the previous resistance zone, which has now flipped to a support level. This retest, visible on the chart as a green-highlighted area, is often seen as confirmation of a breakout’s validity.
Support and Resistance Levels to Monitor
The chart outlines key support and resistance zones for Litecoin. Historically, the lower boundary of the triangle acted as a support level during market corrections. With the breakout, the upper boundary, previously resistance, has now turned into a critical support zone.
On the resistance side, Litecoin’s price may face challenges at historical highs above the triangle. Analysts anticipate that the cryptocurrency may aim for levels around $150 to $200, provided the breakout sustains its momentum and the support zones hold firm.
Image Source: X/AnupDhungana
Although the LTC chart does not explicitly include volume data, a breakout of this nature often coincides with an increase in trading volume. Momentum indicators such as RSI or MACD (not visible in the chart) could further validate the bullish outlook for Litecoin’s price. The tweet from Dhungana emphasizes confidence in this momentum, suggesting the breakout and retest were successful.
Outlook on Litecoin Price Movement
The breakout from this multi-year pattern could signify a shift in Litecoin’s price trajectory. While bullish continuation seems likely, traders should remain cautious about the possibility of a pullback if the newly established support zone fails to hold. The next resistance levels are coming up soon, so what Litecoin does in the next few weeks will tell us a lot about where it’s headed long-term.
This breakout has caught everyone’s attention, and traders are watching closely to see what happens next.
Read Also: Here’s How the Bitcoin (BTC) Price Performed Historically in January
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