Litecoin flashes chances of a 15% surge thanks to this ascending triangle

Litecoin flashes chances of a 15% surge thanks to this ascending triangle

Litecoin presents chances a 15% jump following an ascending triangle setup on its chart. The RSI, MACD and DMI underpin LTC’s ascent and present no correctional threats moving forward. Should LTC register a decisive close above $205, September’s local high of $224 could be its next destination. At the time of writing, LTC traded at $200.9, up by 4% over the last 24 hours.

Litecoin 4-hour Chart

Litecoin’s ascending triangle came to light after the price formed higher lows at $177, $186 and $192, while snapping two highs at $204. Now, as LTC approached the upper trendline of its triangle, the candles traded above their 4-hour 20-SMA (red), 50-SMA (yellow) and 200-SMA (green). With momentum aiding the buying side, LTC was in prime position to register a breakout from this bullish pattern.

A convincing close above $205 could allow LTC to take flight all the way towards September’s high of $233. This indicated a 14% jump from the breakout point of $205. A potential throwback to the upper trendline can also be triggered at the 78.6% Fibonacci level, but such a development would only lend credence to a more organic rally.

On the flip side, uncertainties may begin to creep in should LTC weaken below $233 following the throwback. The region between the 16.8% and 50% Fibonacci levels could provide relief during a correction.

Reasoning

Possibilities of a successful breakout were backed by a rising MACD, RSI and Directional Movement Index. The RSI marked an end to its downtrend after flipping its upper sloping trendline to bullish. All that remained was for the ADX to follow suit, which currently indicated a weak directional trend following a reading of 14.

Conclusion

All 3 indicators used flashed favorable readings as LTC eyed an ascending triangle breakout. Traders can set up long trades once LTC closes above $205. Take profits can be set at $233 and stop-losses at $197, just below the 61.8% Fibonacci level.

Source