- Litecoin price broke the upper trendline of a symmetrical triangle and confirmed a 38% bull rally.
- The buy signal and the transaction data of the SuperTrend indicator provide tailwind for this optimistic outlook.
- Hitting the breakout line on the MRT at USD 177.30 could trigger a new bearish trend.
Litecoin price suggests a massive bull rally as it shook the upper trendline of a technical pattern.
The Litecoin price sees a higher high
On the 12-hour chart, the Litecoin price is trading at $ 220.98 after breaking out of a symmetrical triangle pattern. This technical formation is the result of lower highs and higher lows connected by trend lines.
As LTC goes through setup, its price will be pushed until a violent breakout occurs in either direction. The 38% target of the symmetrical triangle is determined by adding the distance between the pivot point high and low to the breakout point at $ 214.87.
With this move, the Litecoin price is at $ 297.17.
The latest rise of 8% on April 5th caused a breakout and triggered the buy signal from the SuperTrend indicator. A continuation of this bullish momentum therefore promises an upturn of 38%.
LTC / USDT 12 hour chart
IntoTheBlock’s IOMAP (In / Out of the Money Around Price) model gives credibility to the bullish thesis due to the lack of resistance barriers. This metric shows that 30,000 addresses who bought 1.86 million LTC at an average price of $ 230.50 are “out of the money” and put off upside moves.
By overcoming this supply barrier, the bulls will have a clear path to their target of $ 297.17.
Litecoin IOMAP chart
Additionally, the daily metric for active addresses shows a 31% increase over the past 24 hours, with nearly 60,000 new entrants joining the Litecoin network. This addition represents a concern for investors who believe in the bullish potential of LTC.
Daily active Litecoin address chart
Santiment’s 30-day MVRV model for Litecoin shows a slight bump of 9.5%. This increase shows that only a small number of investors are making profits, making a sell-off scenario unlikely. All in all, this metric suggests that Litecoin price has more room for growth.
Litecoin MVRV 30-day chart
While things seem to be looking for the Litecoin price, investors need to be aware of the $ 197 demand barrier. If sellers manage to shake these levels, it will create a bearish momentum as investors in this zone will be pushed to be unprofitable.
The bullish thesis will be nullified if prices continue to move below this level. In such a scenario, LTC price could fall towards the immediate demand barrier near the lower trendline at USD 177.30.