Litecoin (LTC/USD) continues to power to new highs, buoyed by today’s surge beyond the $63,000 mark by Bitcoin, its parent asset. Furthermore, the direct listing of Coinbase is scheduled to hold any time from now, and this is also driving demand on the Bitcoin analogue.
The daily chart of Litecoin showed a clear symmetrical triangle pattern-in-formation last week, which I identified in a previous piece. This pattern has now resolved in the expected direction of the breakout, which is upwards. The expectation of many market watchers is for Litecoin to attain the $300 mark. However, the pattern’s measured move is projected to terminate at the initial resistance located around $272. The odds favour a pullback from this level before another major push takes it to the psychological target, rather than a straightforward push beyond the initial barrier.
Technical Outlook for Litecoin
The breakout from the symmetrical triangle which was predicted last week is in full swing, with the price presently aiming for the initial barrier at 272.31. This is the price projection for the measured move of this pattern, corresponding to the 127.2% Fibonacci extension from the swing low of 26 November 2020 to the swing high of 10 January 2021. Additional targets to the north could be seen at 289.23 (141.1% Fibonacci extension) and 313.22 (161.8% Fibonacci extension), with the 300.00 psychological resistance forming am intervening barrier between the latter two resistance levels.
On the other hand, a rejection at 272.31 could initiate some profit-taking, with the resultant pullback targeting 240.54 (100% Fibonacci extension) initially, with additional downside targets at 228.55 and 209.13. However, retention of bullish bias could turn any of these points into dip-buying areas.
Litecoin (LTC/USD) Daily Chart
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