Litecoin (LTC) Price Chart Reveals a Hidden 35% Rally Signal, But There’s One Catch

Litecoin is back in the spotlight, and this time it’s thanks to a mix of price action and regulatory stir. Just yesterday, the SEC

Litecoin (LTC) price has been making a recovery in recent days, and it could be setting up for a 35% rally if a key resistance level is breached.

Litecoin has shot up by 10.70% in the past 24 hours, trading at $90.45 at the time of writing. The cryptocurrency is now up by 126% year-to-date, making it one of the best-performing major crypto assets this year.

Litecoin technical analysis: A decisive factor for LTC

Litecoin price is testing the crucial resistance zone, spanning between $103 and $105, which has repeatedly blocked LTC's attempts to rise further. This resistance level is formed by the previous highs in January and February, and it coincides with the upper boundary of a well-defined ascending triangle pattern.

The ascending triangle pattern is a bullish technical pattern that forms when a security trades in a triangle, with one horizontal line and one diagonal line. The horizontal line represents the resistance level, while the diagonal line represents the support level.

As LTC trades above the lower boundary of the pattern, it finds support at the Fib 0.382 level and the 200-day moving average around the $88 to $90 range, indicating active buyers in this zone. A breakout from this pattern could propel LTC towards the projected target of $125 to $130, marking a 35.69% rally from the current price.

However, if LTC price drops below the diagonal support and the ascending trendline that started in March, it would negate the bullish setup. In such a scenario, traders can anticipate support at the Fib 0.236 level and previous consolidations around the $85 to $80 range.

"A candle close above resistance, supported by volume, would confirm this move. Failure to do so could delay the breakout or indicate a lower high, rendering the bullish setup invalid," the analyst noted.

"Litecoin is at a technical crossroads, and its next daily close will shape its trajectory in the coming weeks."

The SEC has also postponed its decision on Canary Funds' proposed Litecoin ETF, which is applying for approval to list an ETF that tracks the price of Litecoin on the Nasdaq Stock Market. The regulator was set to decide on the ETF by today, but it has opted for a three-month extension.

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