Litecoin Price Forecast: Upside Of 35% Is Expected After Accumulation Phase
The current price action in Litecoin tells us that the altcoin is in the accumulation phase for now and is facing major resistance. If the recent trend in Litecoin continues, the next direction of Litecoin will become clear in the next few days.
For now, the outlook of Litecoin is looking bullish based on the technical readings. Furthermore, the investors of Litecoin are also looking for a potential breakout to make fresh buys.
Volatility Ahead For Litecoin
At the time of writing this, the Litecoin price action reveals a bullish pennant formation. In this technical setup, the security stages a big run-up that's followed by a consolidation phase.
During the period between 11 - 24th March, Litecoin (LTC) made an upside move and gained 35%, thus forming a flagpole. After that, Litecoin underwent a consolidation phase and formed the pennant.
The end result was a bullish pennant formation in Litecoin (LTC) which is now awaiting a breakout. If we measure the bullish forecast of the pennant formation in Litecoin (LTC), there's a chance of a 35% upside.
This means if the Litecoin (LTC) breakout occurs at the $92 level, the altcoin's target will be somewhere around $125.
While the investors focus on the break above $95, let's not forget that Litecoin must also test this level and confirm it as a support.
And if Litecoin fails to break out of this bullish pennant formation, it wouldn't be a good signal for the Litecoin (LTC) bulls.
On the downside, a break below the $87 support level on the daily charts will be a sign of weakness and will invalidate the current technical setup.
So while the pennant formation is bullish, it remains elusive until we get a clear upside break. And while we are at it, let's not forget that there's always a chance that Litecoin (LTC) could go down and invalidate this pennant setup.