Can Litecoin Price Sustain Momentum After Breakout? $134 Price Projection in Focus

Litecoin Price Analysis: On June 30th, Litecoin witnessed a significant inflow of buying pressure, resulting in a massive bullish candle that breached two important resistance levels – the long-coming resistance trendline and the $103.2 mark. This development in the LTC price3 is likely associated with the Canadian government’s approval for unlimited trading of Litecoin and other cryptocurrencies. However, the bullish rally has taken a temporary halt after reaching a high of $115 and initiated a new correction phase to validate if the breakout is genuine.

Also Read: Beware of the Litecoin (LTC) Price Rally, Here’s Why 30-40% Correction Is Possible

Litecoin Price Daily Chart

• A successful hold above $103 could pave the way for the LTC price to target the next resistance at $133.
• The $93.5 level stands as crucial support accompanied by breached trendline retest, 50% FIB level
• The 24-hour trading volume in the Litecoin coin is $1.29 Million, marking a 49% loss.

Source-Tradingview

Over the past four days, the Litecoin price has been wavering above the recently breached $103.2 barrier to retest it as potential support. This pullback is an essential phase after a massive rally, as it allows for the recuperation of bullish momentum and validates the price stability at higher levels. 

The lower tail rejection observed in the daily candle reflects the buyers obtaining strong support that can assist them to climb higher. If the buyers manage to hold above the $103 level during the pullback, it would validate the breakout and potentially trigger the next phase of the rally. 

In such a scenario, the LTC price may aim for the next resistance level of $134, registering a potential gain of 26%

Can Litecoin Plunge Below $100?

Depending on the current market sentiment, the Litecoin price could correct longer than its current price. Thus, to identify potential retracement, the Fibonacci retracement tool indicates significant support levels at $104.6(23.6% FIB), followed by $98.4(38.2% FIB), and $93.5(50% FIB). a correction this level will still be considered healthy for a potential rally.

• Directional Movement Index: A DI+(blue) slope wavering above the DI-(orange) lines indicates a bullish alignment in Litecoin.
• Exponential Moving Average: The daily EMAs(20, 50, 100, and 200) left behind indicate the overextended rally needs to be stabilized.