The Litecoin price shows some encouraging signs that it could soon break higher, targeting the September highs. Litecoin (LTC) is trading at $197.50 (+0.06%) this morning, which translates to a market cap of $13.6 billion, ranking it the 18th most valuable crypto asset ahead of Polygon (MATIC).
Litecoin had a productive October, gaining over 25% in the month. So far, November has started in the same vein, and LTC has improved by around 3% in the first two days of trading. Subsequently, the price is stable above several previous resistance levels, now providing robust support. However, despite the recent strength, LTC is half the price it was in May and around 15% below September’s high. Nonetheless, the price action is constructive and as long as Bitcoin (BTC) holds above $60k ($61,100 last, it could provide a nice set-up for a long trade with limited risk.
LTC Price Forecast
The daily chart shows the Litecoin price has broken out of a long-term downtrend. Furthermore, LTC is above the 50, 100 and 200-Day Moving Averages at $177.24, $173.84 and $185.42, respectively. The trendline at $166 and the moving averages now offer considerable price support below the market. Therefore, traders may wish to enter long positions at the current level, with a stop below the trendline.
The September high, around $238, looks like a logical target to remove some risk. Moreover, successful clearance of $248 opens the door to an exaggerated rally targeting $300. On that basis, the risk-reward looks favourable.
However, the view also relies on Bitcoin maintaining the $60k level. And therefore, traders should pay close attention to what is happening at the top of the crypto league table. If BTC starts to gain bearish momentum, it will likely derail Litecoin’s recovery. Nonetheless, in isolation, the Litecoin price action looks constructive. My bullish view remains valid as long as LTC holds above the trend support. Therefore a close below $166 invalidates this thesis.
Litecoin Price Chart (Daily)
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