Despite a lack of fundamentals, Litecoin appears headed to new highs as it seeks to complete the break of the symmetrical triangle on the daily chart of the LTC/USD pair.
There are indications that the upcoming direct listing of crypto exchange Coinbase could be the trigger for the renewed upsurge in Litecoin, even as Bitcoin prices to which it is correlated continue to stagnate around $57,000.
Litecoin has lagged behind Bitcoin and Ethereum in terms of year-to-date returns, posting only a double-digit gain in 2021 as opposed to the triple-digit gains of the two aforementioned coins and the quadruple-digit gains posted by several other altcoins.
Litecoin had spiked 10% in 2016 when it was listed on Coinbase’s GDAX exchange. It would appear that the LTC/USD pair has some correlation with Coinbase’s fundamentals, which would explain the pair’s 5.72% gain on the day of a scheduled update on the listing.
The bullish breakout of the LTC/USD pair is about to be completed. The latest attempt to send Litecoin into new record territory is challenging the 228.55 resistance. This resistance needs to be uncapped with a 3% closing penetration above 228.55 for the price to aim for the previous all-time high at 247.05, which remains the ultimate barrier for the bulls to beat to attain a new record.
The break of this price level allows for a continuation of price action towards the projected measured move from the double bottom of 28 February and 25 March, somewhere at 127.2% Fibonacci extension at 272.53. Above this level, 289.23 and 313.22 appear to be viable targets to the north, being the sites of the 141.4% and 161.8% Fibonacci extension levels from the swing of 25 November 2020 to 7 January 2021.
On the other hand, a failure to break 228.55 convincingly could negate the double bottom pattern and favour a pullback towards 209.13, with 200.60 and 186.82 coming in as additional targets to the south.
