Litecoin technical analysis: LTC close to a breakout towards a new ATH

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LTC/USD hit an intraday high of $342, the highest price level reached by Litecoin in almost three and a half years.

Litecoin has surpassed the $300 price level and reached a 3-year high of $342 amid increased buying pressure for “digital money”.

With bulls eager to climb higher, the bullish momentum is likely to push the Litecoin price towards the 2017 high of $375. At the time of writing, the LTC/USD pair is trading around $323 on Coinbase – up 14% on the day and up 31% in profit over the past week.

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The cryptocurrency is also doing well against the much more illustrious BTC, with the pair up 17% in the last 24 hours as more money enters the altcoin market.

Cryptocurrency analyst Michael Van de Poppe suggested that many altcoins could be at the start of a major rally against bitcoin, a prospect that could support further gains for the LTC/USD pair.

A pseudonymous trader outlined why LTC will soon hit a new all-time high: several indicators have become bullish on longer timeframes.

LTC/USD price outlook
Litecoin has broken out to the upside following the appearance of an inverted head and shoulders pattern on the 4-hour chart.

The rise allowed the bull to break through macro resistance at Fib 0.618 ($286) before a minor decline on May 4. But after exploding higher, it broke through the 0.786 ($307) barrier and resisted selling pressure to reach a new multi-year high of $342.

The rise is now trying to keep prices above the resistance line at $328.
The technical outlook for LTC is bullish with the price above the 20-day EMA and 50-day SMA. The RSI on the 4-hour chart also has a positive divergence trend near 70, suggesting that there is room for further upside movement.

If the upward trajectory remains in place, LTC/USD could reach its current all-time high of $375. Above this level, a legitimate target is at the flat $400 level, with potential for further upside towards $500 in the near term.

In the event of a short-term pullback, the LTC price should return to initial support at the Fib level of 0.786. However, the bullish view will remain intact if the rise rebounds from the $300 level or the 20-day EMA ($294). The outlook will turn negative if the price breaks down above the 50-day SMA ($272).

 

Translated with www.DeepL.com/Translator (free version)

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