Litecoin braces for a 100% liftoff following cup and handle breakout

Litecoin projected a 100% upswing following a cup and deal with breakout. A transfer above the Golden Fibonacci Zone would set LTC heading in the right direction to a breakout goal at $360 and one other doable 50% surge on the higher sloping trendline.

Nevertheless, LTC would possibly must take care of a near-term correction earlier than the projected rally as its day by day RSI was at overbought ranges. On the time of writing, LTC traded at $251.7, up by 20% during the last 24 hours.

Litecoin Day by day Chart

Supply: LTC/USD, TradingView

Litecoin was anticipated to proceed its scintillating run after breaking north of its cup and deal with sample. Based mostly on the very best peak inside the ‘deal with’ and lowest level within the ‘cup’, LTC indicated a 54% surge at a goal of $360, barely above the 78.6% Fibonacci stage.

Nevertheless, a near-term correction might kick in as soon as LTC tags its 61.8% Fibonacci stage. This was anticipated largely as a result of the truth that LTC’s day by day RSI was now in overbought territory. Whereas some alts could lengthen deep inside this zone earlier than a pullback is witnessed, LTC has been largely prone to retracements every time its RSI has touched the higher trendline.

Ought to a minor sell-off happen, assist discovered anyplace above the 50% Fibonacci Degree would assist protect LTC’s bullish outlook. As soon as LTC initiates a leg above the 78.6% Fibonacci stage, the value might quiet down as buyers money out on the rally.

If LTC maintains sturdy volumes above its breakout goal, one other 50% surge might permit LTC to tag its higher sloping trendline (yellow dashed line).

Conclusion

Other than some threats current alongside the RSI, the MACD and Directional Motion Index strongly favored the bulls. Ought to bulls proceed to press their benefit, a 50% soar may be achieved in direction of LTC’s breakout goal at $360. An extra 50% surge in direction of the higher trendline was additionally attainable if LTC maintains sturdy purchase volumes above the aforementioned goal.