- Litecoin price is at $55.88 after a notable dip towards $53.44.
- The LTC/BTC chart shows a descending wedge pattern that is on the verge of a breakout.
LTC seems to be trading inside a descending wedge formed on the monthly chart and is currently at $55.88, after having touched $53.44. The pattern is on the cusp of a massive breakout. Additionally, an essential technical indicator is about to present a strong buy signal.
Litecoin Price Prediction: The technical picture
One of the most important charts for Litecoin in the long-term is the monthly LTC/BTC chart. The descending wedge formed here is on the verge of a breakout, and the TD Sequential indicator presents a red eight candle signal, which often precedes a strong buy signal.
LTC/BTC monthly chart
Observing the past two instances when the TD Sequential indicator showed buy signals, it can be observed that Litecoin had two significant rallies. The first rally was in February 2017, jumping 600% within the next five months, and the second rally happened in December 2018, rising 175% within five months.
On top of that, it seems that the MACD is slowly turning bullish for the first time since April 2019. LTC/BTC would have a price target of 0.0128, around $154 on the price of Litecoin. Furthermore, the LTC/BTC chart also seems to be forming another morning star pattern like the one we saw in November 2017. This is a notable sign of a reversal, especially when combined with the TD Sequential indicator.
LTC/USD monthly chart
Litecoin seems to be forming a wedge pattern on the LTC/USD monthly chart. If the buy signal on this chart is not validated and LTC breaks below the lower trendline at $43, we could see the digital asset slip towards $12.
LTC IOMAP chart
The In/Out of the Money Around Price (IOMAP) model shows a robust resistance area between $57 and 58 with 4.7 million LTC in volume, but very little support below. This means that selling pressure is higher at the moment.
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