Even though the overall crypto market is bearish, Litecoin has been able to prove its staying power. This is evidenced by the rising price of Litecoin (LTC) up to $ 100.
It is not certain whether this increase is only limited to the short term or not. However, the long-term trend cannot be predicted.
The increase in the positive trend of LTC price is due to several factors. Firstly, LTC price has broken the descending resistance line since April 18, 2023. That signifies the completion of the previous correction.
The break of this resistance line was preceded by a strong bounce on May 8. Which in the end reclaimed the Fibonacci retracement support level at 0.618.
As it is known that the principle behind Fibonacci retracement levels tells about several facts. After experiencing a price increase in one direction, the price will return to the previous price level before continuing in the original direction.
The 0.618 Fib level is the one that most often acts as a floor during corrections. So to signal that its break is also a strong sign that the previous correction has ended.
Second, LTC has completed a corrective pattern or A-B-C structure. This strengthens the prediction that the correction has been completed. And continued with the uptrend that just started.
And finally, the RSI gives a bullish reading. By using the RSI as a momentum indicator, traders can determine whether the market is overbought or oversold and decide whether to accumulate or sell assets.
If the RSI reading is above 50 and the trend is up then that is a bullish sign in favor.
Will the Price Reach $100?
Looking at the number of waves on the short-term six-hour time frame, it indicates that the price increase will continue.
When viewed from technical analysis using Elliot’s theory, the price of LTC has also increased. This analysis is used as a means of identifying recurring long-term price patterns. As well as investor psychology that helps them determine the direction of the trend.
It is known that the LTC price started a five-wave increase since the bounce that occurred on May 8. This means that the price is in the fifth and final wave of this upward movement.
The most reasonable top price target for this move would be $102. It is found by the 1.61 external fib retracement of wave four and of wavelengths one and three. Because of this meeting, it can be predicted that this area is the peak area of movement.
Whether this is true or not, no one knows. Because this is only a prediction when bullish. But if you see a dip below the local low of $87.50, that means the trend is bearish. And this could make the price fall to the next nearest support at $78.