Despite a lack of fundamentals, Litecoin appears to be on its way to new highs to complete the break of the symmetrical triangle on the daily chart of the LTC / USD pair.
There is evidence that the upcoming direct listing of Crypto Exchange Coinbase could be the trigger for Litecoin’s renewed spike, even if the bitcoin prices it is correlated to remain stagnant around $ 57,000.
Litecoin has lagged behind Bitcoin and Ethereum in terms of year-to-date returns, seeing only double-digit gains in 2021 as opposed to the three-digit gains of the two aforementioned coins and the four-digit gains of several other altcoins.
Litecoin had seen a 10% increase in 2016 when it was listed on Coinbase’s GDAX exchange. It appears that the LTC / USD pair has some correlation with Coinbase’s fundamentals, which would explain the pair’s 5.72% gain on the day of a scheduled listing update.
Technical outlook for LTC / USD
The LTC / USD pair’s bullish breakout is about to close. The recent attempt to send Litecoin into a new record area calls into question the resistance at 228.55. This resistance must be removed with a final 3% penetration above 228.55 for the price to target the previous all-time high at 247.05. This remains the ultimate barrier for the bulls to set a new record.
The interruption of this price level allows price movement to continue in the direction of the forecast measured move from the double bottom on February 28th and March 25th, somewhere at 127.2% Fibonacci expansion at 272.53. Above that level, 289.23 and 313.22 appear to be viable targets in the north as they are the locations of the Fibonacci expansion levels of 141.4% and 161.8% from November 25, 2020 through January 7, 2021.
On the other hand, failure to convincingly break 228.55 could negate the double bottom pattern and favor a retreat towards 209.13, adding 200.60 and 186.82 as additional targets in the south.
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Litecoin (LTCUSD) daily chart