Litecoin projected a 100% upswing following a cup and deal with breakout. A transfer above the Golden Fibonacci Zone would set LTC on target to a breakout goal at $360 and one other doable 50% surge on the higher sloping trendline.
Nonetheless, LTC may must take care of a near-term correction earlier than the projected rally as its each day RSI was at overbought ranges. On the time of writing, LTC traded at $251.7, up by 20% over the past 24 hours.
Litecoin Each day Chart
Supply: LTC/USD, TradingView
Litecoin was anticipated to proceed its scintillating run after breaking north of its cup and deal with sample. Primarily based on the very best peak inside the ‘deal with’ and lowest level within the ‘cup’, LTC indicated a 54% surge at a goal of $360, barely above the 78.6% Fibonacci degree.
Nonetheless, a near-term correction may kick in as soon as LTC tags its 61.8% Fibonacci degree. This was anticipated largely because of the truth that LTC’s each day RSI was now in overbought territory. Whereas some alts might prolong deep inside this zone earlier than a pullback is witnessed, LTC has been largely prone to retracements every time its RSI has touched the higher trendline.
Ought to a minor sell-off happen, assist discovered wherever above the 50% Fibonacci Degree would assist protect LTC’s bullish outlook. As soon as LTC initiates a leg above the 78.6% Fibonacci degree, the value may cool down as traders money out on the rally.
If LTC maintains robust volumes above its breakout goal, one other 50% surge may permit LTC to tag its higher sloping trendline (yellow dashed line).
Conclusion
Other than some threats current alongside the RSI, the MACD and Directional Motion Index strongly favored the bulls. Ought to bulls proceed to press their benefit, a 50% bounce could be achieved in direction of LTC’s breakout goal at $360. An extra 50% surge in direction of the higher trendline was additionally attainable if LTC maintains robust purchase volumes above the aforementioned goal.
