Is Litecoin now in the final stages of a technical formation that could take the price to $600 plus?
Litecoin is looking to capitalise on the Litepay project launch which is scheduled for today, Feb 26.
Litecoin set a low at $182.25 last Friday, which drew the second shoulder of the H&S formation. After that, the pattern has been fully completed. LTC price is moving inside a range targeting several resistances, the main one around the $230 mark. The bullish projection of the current formation sets a potential mid-term target at $700.
MACD in the Litecoin chart is trading inside the positive area, although not by much. The indicator keeps a bullish profile, but with not much inclination, so it should follow a quiet bullish development instead of widespread action.
Directional Movement Index is much more clear and shows buyers in control. D+ is moving above ADX, indicating strength. Meanwhile, ADX is still trading below 20, the level that measures the trend strength. The absence of trend supports the idea of quiet bullish action for the upcoming trading sessions.