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Litecoin (LTC) price on the brink of surging to $180 highs

Litecoin is on the verge of breaking a descending triangle technical formation to push its price to as high as $180

Litecoin has been in a pullback phase creating lower lows ever since it hit a peak of $186.34 on 10 January. This led to the creation of a descending triangle technical formation, which LTC bulls are now contesting. If they manage to break the top side of the formation, we can expect LTC to push up with increased volume.

Litecoin fundamentals and past price performance

Litecoin’s overall outlook is tied to Bitcoin more than other cryptocurrencies due to the specific nature of Litecoin being “digital silver” to Bitcoin’s “digital gold.” However, this does not imply a complete correlation between the two assets. Litecoin’s fundamentals are currently fairly stagnant as there were no new partnerships or project improvements announced. Most (if not all) moves LTC made in 2021 were completely based on the market sentiment and the project’s technicals.

LTC/USD daily chart breakdown

Taking a look at the daily chart, Litecoin has been making lower highs since the $186.34 high it made on 10 January. However, its downside was well-protected by the 61.8% Fib retracement level of $119.65. This price action has, in turn, created a descending triangle formation, which is at a breaking point at the moment.

Most analysts are calling for a possible break of the formation over the course of the day, that could potentially cause a massive price and volume increase.

LTC/USD daily price chart. Source: TradingView

Litecoin’s daily RSI level has been hovering around the middle of the value range ever since 11 January, with its current value sitting at 50.68.

LTC/USD hourly chart breakdown

Litecoin’s hourly time-frame shows us the recent price movement and attempts of breaking the top side of the triangle formation, both on 29 January and today. However, today’s push seems a bit stronger and better-backed by the exponential moving averages, which caused analysts to have more confidence in today’s push breaking the triangle formation top side.

LTC bulls will need to not only break the descending line but also establish their presence above it by confirming LTC’s position. Only then can Litecoin freely push towards recent highs or the 2021 high of $186.34.

LTC/USD 1-hour chart. Source: TradingView

What’s next in store for Litecoin and its price?

Litecoin was acting as a “safer Bitcoin” in recent months as its price direction matched the direction of Bitcoin’s movement, but with much less intensity. However, the current technical outlook shows a potential price breakout and short-term “decoupling” from the largest cryptocurrency by market cap.

If Litecoin does manage to break the triangle formation and confirm its position above it, it is very likely that LTC will push towards the 2021 highs in an attempt of contesting them or creating a new one. However, any major move towards the downside that Bitcoin makes may disrupt LTC’s price ascension.

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