If LTC resumes upside and breaks above resistance near $238, a breakout above another key resistance zone could see bulls attack $300 or higher
Litecoin (LTC) is looking to bounce off support at $230 and target short-term resistance at $238. This follows a dip to lows of $220, which came after bears rejected bullish advances at the aforementioned zone. LTC is likely to bounce higher given the technical picture on the daily and 4-hour charts.
At the time of writing, Litecoin is trading at $234, slightly up over the past 24 hours by around 2.5%. The cryptocurrency, currently ranked 8th by market cap, is however stronger over the week as it remains 27% in the green zone.
Litecoin price upside picture
Litecoin price broke above resistance at $229 after its rejection near $240 sent it tumbling to $220. A clear break above the immediate resistance zone at $239 will likely see the LTC/USD pair move towards a three-year high. Beyond that, bulls will target the all-time high of $375.
The daily RSI and MACD suggest bulls have room to maneuver to the above targets.
As the daily chart shows, the horizontal resistance line around $239 is the main hurdle before a potential retest of $273, a price level marked by the 0.618 Fibonacci retracement level of the move from $375 peak to $25 low.
If bulls succeed in breaching that barrier, the next target could be the psychological $300 and then the 0.786 Fibonacci retracement level ($340). Achieving this milestone would put $375 into focus, which is Litecoin’s all-time high reached on 19 December, 2017.
The 4-hour chart suggests a retest of the $240 hurdle is even more likely, with LTC trading higher within a contracting rising wedge pattern.
The pair is also looking to validate a short-term bullish break from a descending trend line. A clear break to the upside could place Litecoin’s price near $246, and see bulls target the aforementioned levels on the daily log.
The 4-hour MACD is suggesting a hidden bullish divergence, while the 4-hour RSI is increasing towards the overbought territory. This is a continuation outlook that implies a stronger move is on the cards.
According to crypto analyst and trader Michael van de Poppe, Litecoin is undervalued and could surge to $450-$700 this summer.
“#Litecoin is heavily undervalued compared to #Bitcoin. That’s what you derive from the $BTC pair. Next to that an impressive amount of volume recently and strong bullish divergences. I’m expecting $LTC to run to $450-700 in May-July.”
Litecoin price downside move
A bearish reversal might surface if Litecoin price drops below support at the lower trend line of the contracting rising wedge. This will likely see LTC dip below $230 again, with the 50-day simple moving average (4-hour) providing support at $211.
Any further losses could see prices decline as low as support at $180 in the short term.