The price of LTC has been trading within an ascending triangle since late May 2022. Ascending triangles are considered bullish patterns, which may result in a breakout from the pattern as the most likely price scenario in the future.
The weekly RSI indicator is currently leaning towards an upward trend. The RSI is a momentum oscillator that traders can use to determine if the market is overbought or oversold and make decisions on whether to accumulate or sell an asset.
If the RSI is above 50 and trending upwards, the buying side has an advantage, but if the RSI is below 50, the selling side has an advantage. For LTC, the weekly RSI is above 50 and rising. Moreover, it has formed a hidden bullish divergence (green line).
A closer analysis of the daily timeframe also suggests a clear bullish price outlook, primarily due to the wave count.
The wave count suggests that LTC is currently in the third wave (white) of a five-wave upward cycle. The third wave is typically the largest and most pronounced wave in the five-wave pattern. Therefore, LTC may continue to rise at a faster pace if the calculations are accurate.
Litecoin’s price is expected to surge soon if the projected wave pattern accurately aligns, aiming for the next resistance level at $130.
Despite the bullish price prediction for Litecoin, a drop below the lowest point of wave two (red line) at 71 USD would indicate a downtrend. This decline would invalidate the bullish forecast and could potentially lead to a further drop to 50 USD.