Sign Up on MEXC3 Reasons Why Buying Litecoin Could Boost Your Portfolio In Early 2023
The Litecoin price has been rising for three consecutive weeks and is gradually approaching the $80 resistance. Under the influence of the cup and handle pattern, the coin price breached this monthly barrier which may offer a strong launchpad to buyers and continue the bullish recovery.
Source- Tradingview
Litecoin Price Forms A Bullish Reversal Pattern
The Litecoin price shows the formation of a cup and handle pattern in the weekly time frame chart. This pattern resembles itself as shaped a normal teacup, but it is one of the most common bullish reversal patterns observed at market bottoms.
In theory, the U-shaped recovery during the formation indicates the buyer gradually taking trend control and carrying a sustained recovery. Moreover, this pattern has a key resistance level whose breakout would intensify the buying and provide an entry opportunity for investors.
The Litecoin chart shows this resistance at $80, and in the ideal condition, it should drive a bullish rally to the $110 mark.
Also read: Here’s How Much Your $1000 Investment In Litecoin Will Be Worth If LTC Reaches $100
The $0.478 Stand As Crucial Support
Amid the recent uncertainty in the crypto market, the litecoin price has been walking a sideway strength for the past two months. However, during this consolidation, the prices rebounded from the $47.8 mark several times, indicating the buyers were obtaining sufficient support from it.
This support zone has also bolstered the cup and handle pattern mentioned above.
Bullish Divergence In RSI Indicator
The Relative Strength Index (RSI) indicator reflects the underlying strength of the price trend by calculating the speed and magnitude of recent price action. Thus, despite the sideways trend in litecoin, the weekly RSI showing evident growth indicates the rising buying pressure in the market.
This bullish divergence increases the probability of an upcoming recovery rally.
Current Price Action
Over the last two weeks, the Litecoin price rebounded from local support of $63.75 and surged 18.5% high. The recent new year recovery assisted buyers with this growth and pushed it to its current price of $75.6.
Thus, with sustained buying, the LTC price may continue to rise and challenge the $80 neckline resistance of the cup and handle pattern.
- Resistance Levels: $80 and $101
- Support Levels: $63.7 and $47.8
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