Litecoin Price Prediction: LTC Faces Rejection At The $255 Resistance Line
Daily Litecoin LTC Technical Analysis
- Litecoin price is currently trending in an upward channel formation.
- LTC has entered the Bollinger Band.
The Litecoin price has jumped from $170 on March 26 to $255 on April 10, gaining almost $85 in two weeks. During this surge, LTC entered in an upwards channel formation, and crossed above the Bollinger Band. Let’s take a closer look with technical analysis.
Litecoin Price Falls Back Into The Bollinger Band
Litecoin price met heavy resistance at $255 and dropped to $244. Due to this dip in price, LTC is no longer overvalued. We can make this conclusion due to the following factors:
- Litecoin has dropped back into the Bollinger band.
- The RSI was trending at the edge of the overbought zone and has dipped back in.
Image: LTC/USD daily
Looking at IntoTheBlock’s IOMAP, we can see that the most robust support line lies at $235. Previously, at this level, 51,000 addresses had purchased over 3 million LTC tokens. This line is robust enough to absorb a ton of selling pressure.
Top Analyst: Litecoin Forming ‘Ultimate Alpha’ Pattern
Renown trader Nicholas Merten said that Litecoin (LTC) is poised to outperform Ethereum significantly. In a recent DataDash video, Merten noted that LTC seems to be bottoming out against Ethereum. The trader said that he allocated a significant part of his portfolio into the Bitcoin fork as he believes it may rise significantly in its ETH pair.
“At this range here, Litecoin historically did a 5x against Ethereum… That’s massive. And these are the types of ratios you guys should be looking for because this is how you actually return multiples upon multiples of what the market is generally getting..This is the ultimate alpha here, if you really want to put it that way. There are not many greater opportunities than being able to find these kind of large cap plays that are already well established, that still have a chance to do crazy multiples against another play like Ethereum that’s already doing phenomenally well and leading most cryptocurrencies.”
Though Merten did not provide an LTC price prediction, one chart he shared showed Litecoin surging towards $2,000 soon. However, the analyst noted that he is not closely keeping an eye on Litecoin’s performance against the USD. He suggested traders look at the technical setups flashing on the LTC/ETH and LTC/BTC charts.
“I don’t really think it’s a matter of watching the US dollar value chart. The biggest thing here we want to watch is the ratios. The ratios now are cheap. I’m not saying they’re going to go all the way up here and do a 5x against Ethereum. I think Ethereum’s got a lot of momentum now with decentralized finance (DeFi)… but I will say generally speaking whether… it’s a 100% return (2x), 200, 300, 400% return – whatever it is, this is a really favorable setup in my mind for the technicals…”
The DataDash founder noted that traders should have solid exit strategies and prepare to lock in profits early.
Litecoin Price Is Expected To Reach These Levels
Litecoin price will likely drop to the robust $235 support wall before jumping up and reaching $255 again. $255 is strong resistance as 51,000 addresses had previously purchased 1.2 million LTC tokens here. A break above will take to the upper bound of the channel, which should be around $275.