Litecoin (LTC) Rebounds from Multi-Week Support, Is This a Relief Rally to $200?

Litecoin prices plunged 54 percent from H2 2021 peaks as last week’s losses sent shockwaves across the crypto market.

When writing, there are encouraging pullbacks.

However, this is not to say the market has fully recovered, and buyers are back in contention. If anything, Litecoin sellers are squarely in charge.

What’s more? The path of least resistance remains southwards. With this picture in mind, risk-averse traders can wait until there is a complete turnaround from spot rates before committing to go long.

Litecoin Market Performance and Price Status

Technically, the downtrend is with high trading volumes. Since the market is still apprehensive and bear bars banding along the lower BB dampening recovery hopes despite early Asian session gains.

From a volume analysis, as long as prices are capped inside the December 4 bear candlestick, every high might offer entries for aggressive LTCUSDT swing traders. Their immediate targets would be last week’s lows at around $130.

There might be long lower wicks suggesting strength in lower time frames. However, what’s needed for trend definition and swing from bearish to bullish is a close above $200. It would signal trend reversal and unwinding of December 4’s conspicuous wide-ranging bear bar.

In that eventuality, the defining bear bar would be a climactic bear candlestick marking the end of the bear run traced to mid-November 2021.

Further confirmation would also likely form the base for a leg up, invalidating the bear breakout pattern below the ascending trend line, which offered a bouncing line for the better part of October to mid-November 2021.

Will Litecoin Fall to $100 before Rebounding?

It is the position of one trader that while Litecoin is under immense selling pressure, the long-term outlook is bullish.

Accordingly, he predicts LTCUSDT prices to initially fall below immediate resistance at $130 to $100. At that level, the analyst says Litecoin bulls will likely snap back to the primary trend in a lift-off that will see the coin float to all-time highs above $400.

He reasons that Litecoin prices are now preparing for the next leg higher in an Elliot wave formation.

The dump of the past few weeks traced back to mid-November 2021 may offer entries for position traders to double down, dollar-cost-averaging—at spot rates in anticipation for a Litecoin revival.

Is LTC Preparing for a Disbelief Rally?

This is the preview of one trader on Trading View.

While the LTCUSDT price action is weighed negatively against buyers as it appears on the daily chart, the trader is convinced that prices will recover as long as there are no sharp dumps below crucial support levels.

Using Fibonacci fans and Gann ratios, the analyst points out that LTCUSDT prices are presently at a pivot. Even so, the Litecoin market could be preparing for a relief rally from spot rates.

He projects that Litecoin prices will steadily rise in the coming days, posting even more gains from December 9—a date that historically crypto prices tend to rebound.

LTCUSDT Uptrend Structure is Still Valid

Zooming out to the 3-Day time frame, another trader on Twitter is bullish on Litecoin.

📌 #LTC $LTC | $USDT pairing

Zoom out to 3D timeframe and structure still looks great.

I still believe new ATH is coming – It may take some time however it should come ⚡️#Crypto $alts pic.twitter.com/slLith5jmT

— Yo! Crypto ₿🤘🏻 (@YoCrypto) December 7, 2021

From his analysis, the uptrend remains valid as long as prices trade above the ascending trend line—around $140—the spot rates.

The resilience of Litecoin buyers in absorbing selling pressure and maintaining the structure is a net positive for optimistic buyers in the days to come.

Charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.