LTC price has recovered strongly from its June 2022 low and is currently trading 84% higher. The ongoing breakout is a positive sign for the future price.
On November 9, LTC price rebounded after falling as low as $47.6 (green symbol) and created a bullish engulfing candle the next day. This accelerated the uptrend and led to a maximum price of $85 on December 5.
After that, the sell-off caused the price to drop below the critical $72.50 area, marking a false breakout. However, Litecoin moved above $72.50 again on Jan. 3. It is currently in the process of confirming this zone as support.
If successful, LTC price could rally to the next resistance at $130. On the other hand, a daily close below the $72.50 zone could bring Litecoin’s price back to the ascending support line at $58.
The daily RSI supports the continuation of the upward movement. The indicator moved above the 50 levels and broke out of the bearish divergence (black line). This is a sign that often precedes upward movements.
Therefore, the most likely scenario for Litecoin in January is the continuation of the uptrend toward $130. A daily close below $72.50 would invalidate this bullish forecast.
Analyzing the weekly timeframe with the daily timeframe shows that both the price and the weekly RSI have broken above the descending resistance lines. Furthermore, the weekly RSI has moved above 50, a sign of an uptrend.
Finally, the main resistance area on the weekly timeframe is found at $130, which coincides with the resistance area on the daily timeframe.
So, the readings from the weekly timeframe favor the rise of LTC in January.
In summary, the most likely Litecoin price forecast is an upward move toward the $130 horizontal resistance area. A daily close below $72.50 would put this bullish outlook at risk.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision.
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