Graphic Analysis
1. Target and Prices:
• One of the target levels indicated on the chart is around 320 USD, which indicates a 378% increase from the current level.
• Current price: around 120 USD.
2. Support and Resistance:
• Support Levels:
• There is a strong support level in the 90-100 USD range.
• A lower support level is located around 70 USD.
• Resistance Levels:
• 140 USD appears as the first important resistance level.
• A stronger resistance is observed at the 200 USD level.
3. Indicators:
• Since the trend is upward, the RSI is probably approaching the overbought region. Overbought situations should be followed carefully.
• Moving averages (MA):
• Long-term MAs remain below the price, indicating a strong uptrend.
4. Formations and Formation Reversals:
• Descending Wedge Formation:
• This formation broke upwards and gave a strong bullish signal.
• The widest height of the formation is usually taken as the formation target, which indicates the 320 USD level on the chart.
5. Trend Direction:
• Main Trend: Upward.
• Short-Term Trend: Momentum is bullish after the breakout.
6. Strategy and Recommendations:
• Buying Strategy: If the price is pulled back to the support levels (90-100 USD), gradual purchases can be made.
• Target Setting: The first target can be 140 USD, then 200 USD and the final target can be 320 USD.
• Stop Loss: If the level falls below 90 USD, positions should be reviewed.
• Risk Management: Caution should be exercised in the transition to the overbought region and a profit realization strategy should be implemented.
General Comment:
Litecoin (LTC) price has gained strong upward momentum by breaking a significant downtrend. The chart gives positive signals for medium and long-term investment. However, market dynamics should be constantly monitored, considering volatility.