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  • Litecoin price has just defended a crucial support level at $121.
  • The digital asset is trading inside a descending triangle pattern on the 12-hour chart. 
  • The TD Sequential indicator has presented a buy signal that can help the bulls.

Litecoin has been trading sideways in a consolidation pattern after reaching its 2021 top at $185. LTC bulls are trying to defend a crucial support level and push Litecoin price towards $140.

Litecoin price can quickly rise to $140 with this rebound

On the 12-hour chart, Litecoin established a descending triangle pattern with a support trendline located at $121. It seems that bulls have defended this level once again and LTC price has rebounded by 6% in just two hours after touching $118. 

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LTC/USD 12-hour chart

This rebound could push Litecoin towards the upper trendline at $140. On the 2-hour chart, the TD Sequential indicator has just presented a buy signal giving credence to the bullish rebound.

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LTC/USD 2-hour chart

The In/Out of the Money Around Price (IOMAP) chart shows the most significant resistance area to be located between $136 and $140, which coincides with our price target above. In this area 4.8 million Litecoin was purchased by more than 104,000 addresses.

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LTC IOMAP chart

However, the IOMAP model also indicates that support below $120 is scarce. A breakdown below $120 would be a bearish breakdown from the descending triangle pattern on the 12-hour chart with a price target of $78. 

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LTC/USD 12-hour chart

The Confluence Detector shows only one robust resistance level at $127 which coincides with the 50-SMA level on the daily chart. On the downside, there is support between $126 and $125.

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LTC Confluence Levels

These two levels coincide with a previous high on the 4-hour chart, the 10-SMA on the hourly chart, the previous high on the 1-hour chart and finally the previous low in the 15-minutes chart.