Litecoin [LTC] closed below the key resistance level of $113; when can we expect a bullish breakout?
As of the time of writing, LTC is trading at $104.06, and despite experiencing a significant drop last night, market activity remains strong.
Moreover, LTC has broken through a long-term ascending triangle pattern, which typically suggests a continuation of the upward trend.
The recent monthly closing price above $113 marks a significant shift in market structure, reinforcing the dominance of buyers.
This breakout indicates a solid foundation for further price increases in the short to medium term.
The breakout area around $113 is currently a key support level. Analysts believe that if LTC remains above this level, the bullish structure will hold.
Additionally, the long-term ascending trend line near $90 provides dynamic support, making it a key level to watch during any potential pullbacks.
The price targets for Litecoin are $199, $243, and $282.
Analysts have identified three key price targets for LTC. The first target is $199.64, representing a historical resistance zone. The second target is $243.13, marking an important psychological and technical threshold.
If LTC maintains its momentum, the third target of $282.02 may come into focus, representing a potential return to multi-year highs.
Market experts warn that resistance around $120 has limited price movement in recent trading days. Confirming a breakout above this level is seen as a necessary condition to unleash stronger bullish momentum to achieve these targets.
Technical indicators suggest that breaking this resistance level could act as a catalyst for the next round of rebounds.
The bullish trend is gradually weakening.
The MACD indicator shows a weak bullish crossover, with the MACD line at 0.94, slightly above the signal line at 0.31 at the time of writing.
However, the fading of the histogram suggests a moderate bullish momentum, indicating that prices may consolidate in the short term. Market observers note that a larger trading volume may be needed to maintain the upward trend.
The RSI (14) is at 55.01, reflecting neutral momentum but slightly leaning towards bullish.
Analysts point out that an RSI index breakout above 60 could signal stronger buying activity, while a drop below 50 could indicate a pullback, potentially testing support around $100.
Address activity suggests a complex sentiment.
Blockchain data from IntoTheBlock shows that as of December 23, 2024, the total number of LTC addresses is 705.44K.
The number of new addresses this week is 168.13K, a decrease of 6.16% compared to the previous week.
Meanwhile, active addresses increased by 3.53%, indicating that although interest from new participants has decreased, existing users are still engaged.
The number of zero-balance addresses has increased by 6.14%, indicating that some have taken profits or cleared dormant wallets.
While overall participation remains stable, the decrease in new address creation may indicate a cautious sentiment among potential new investors.
The bullish breakout of LTC and the momentum sustained above key levels provide an optimistic outlook for further gains.
In summary, Litecoin's bullish trend after breaking $113 hints at potential upside, with targets set at $199, $243, and $282. Active addresses have increased by 3.53%, but new addresses have decreased by 6.16%, suggesting mixed market sentiment.