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The crypto currency Litecoin (LTC), also known as digital silver, has increased in value by almost 60 percent since the FTX bankruptcy and the resulting correction at the beginning of November. The main reason is primarily to be seen in the upcoming halving date of the Proof-of-Work (POW) coin in July this year. The halving of the block rewards prompted investors to invest more in 2022. This makes Litecoin one of the outperformers of the weak stock exchange year 2022. The positive performance of the LTC price could therefore be seen as a blueprint for the price development of its big brother Bitcoin, digital gold.
- Bullish price targets: $77.97/85.00, $89.97, $98.35/100.77, $107.08, $115.05, $133.67/140.48, $153.93, 167.17 USD
Litecoin: Bullish price targets for the coming months
After a slight price consolidation to USD 61.04 in December, the Litecoin price is again showing its bullish side in the first trading days of 2023. The LTC price is currently trying to break through the supertrend at USD 74.97 and thus activate a fresh buy signal. If this plan is successful and the lower edge of the blue make-or-break zone at USD 77.97 is then dynamically overcome, a directional decision will be made at the high from the previous month at USD 85.08. A breakout of this key daily close resistance is likely to push through to $89.97 and beyond. In particular, stabilization above the blue zone opens up further price potential towards the USD 98.35 mark. This is where the tear-off edge of the sell-off from May 2021 can be found. Although the first investors are likely to realize profits and the LTC price will initially bounce off here, as soon as this level has been broken through, a further price surge up to the lower edge of the orange resist zone is to be planned. The USD 107.08 mark was already highly relevant several times in the first half of 2022.
The chart picture is getting brighter and brighter
If the buyer side succeeds in recapturing this resistance level in the coming months, a subsequent increase to the upper edge of the zone at USD 115.05 can be expected. Here, the LTC course should initially take a breather. If this area can then also be overcome dynamically, the next target area between USD 133.67 and USD 140.48 will be activated. In addition to several intermediate highs from the spring of the last trading year, the higher-level 61 Fibonacci retracement also runs here. With that, Litecoin would have completed its first important target zone. Whether the bulls can continue to pull the trigger in this zone despite significant profit-taking and take the LTC price to the high for the year of 2022 at USD 153.93 before the targeted halving date, will largely depend on the development of the overall market and the US -Depend on stock markets. If the previous year’s high is actually started, the maximum price target that can be derived for Litecoin in 2023 at USD 167.14 would also be within reach. Litecoin could only work through its maximum target on the upside if the Bitcoin price can also recover significantly in the course of its halving date in early May 2024.
Bearish price targets: $68.89, $66.10/63.19, $61.04, $57.73/55.50, $50.72, $47.21, $43.51/39.39, $35.62 $29.18, $25.52/$23.16
Litecoin: Bearish price targets for the coming months
The bears are able to parry the attempt to break out of the supertrend as they did yesterday Monday (Jan 2). Should Litecoin subsequently fall back below USD 71.73, a short-term decision at the cross-support at USD 68.89 should be planned. The moving average EMA200 (blue) can also be found here. If this support is actually undercut, the light blue zone between USD 66.10 and USD 63.19 will soon come into focus. As long as Litecoin does not correct below this zone at the end of the day and, in particular, does not undercut the last interim low of USD 61.04, the upward trend is still safe. However, if the LTC price dynamically breaks through this support mark and continues to fall in the direction of the green support zone between USD 57.73 and USD 55.50, the trend of the last few months is increasingly at risk. A retest of USD 50.72 is threatened in the short term. Here the first buyers are likely to come back and want to hold back. However, if the selling pressure persists and this support is also breached, the USD 47.21 mark will become the focus of investors. Once again, the buyer side could aim for a stabilization of the LTC price.
Bullish trend break signals further course correction
However, if this support level is also permanently undercut, the overriding upward trend since June 2022 would also have ended and Litecoin should fall back into the purple support zone in the area of the previous year’s low between USD 43.51 and USD 39.39. This is the last chance for the bulls to form a double bottom. However, the bulls have to show their colors here. However, should the Bitcoin price then also correct below the previous year’s low of USD 15,500 and continue to fall to USD 13,850 or lower, an extension of the correction to at least USD 35.62 is also conceivable for Litecoin. This would also increasingly endanger the old rule of a bullish price movement in the months before the halving date. It is possible that the LTC price could tumble to USD 29.18 or even lower. If Bitcoin and with it the entire crypto market continue to correct significantly south in the first half of the year, a sell-off of Litecoin to the maximum conceivable bearish target range of between USD 25.52 and USD 23.16 is also not impossible. As long as the Litecoin price can be stabilized above USD 61.04, the bulls will continue to hold the reins and should continue to try to overcome the resistance at USD 85.00 in the course of the upcoming halving.