The Litecoin price has bounced this past week off a pivotal, established ascending support, restoring hopes of an eventual breakout bid even amidst interim macro weakness dragging crypto sentiment.
Analysis shows Litecoin has been riding an ascending trendline since June 2022—now 630 days old—and has facilitated multiple bounces over recent months. This oft-tested demand area forms the backbone, ensuring prices stay afloat during turbulent market conditions.
And even despite minimal upside progress within the prevailing downtrend presently, maintaining this long-term trendline signifies bearish exhaustion. Rejection of lower support reaffirms the conviction that a base exists even if the upside remains lackluster for now.
The weekly Relative Strength Index adds credence to this bullish backdrop by crossing firmly above 50, denoting a positive directional trajectory favoring buyers. Momentum on larger timeframes appears aligned for continuation over mean reversion at this stage based on the resilient indicator signal.
Can Litecoin surge from here?
Zooming into the daily chart reveals Litecoin trying to crack the triangular resistance that has confined its range since August 2022 as well. Gaining acceptance above this barricade with conviction can set the stage for an upside extension towards the $95 area in the medium term.
However, until a daily close materializes above the hurdle, breakout confirmation remains premature. Failed moves risk pullbacks towards triangle trendline support, now raised to $68.
Yet both oscillators and key technical levels highlight gathering evidence of an impending directional resolution for the long-compressed Litecoin. With Bitcoin showing strength again, the path of least resistance seems upward for LTC after repeated confirmations of its robust support this past year.
If prior drawdowns represented shakings out of weak hands, the current stabilization hints at one final markup ahead to catch late bulls off guard amidst still-present skepticism. All that remains now is to see actualized buying volumes validate what appears to be an imminent rally bid in the making, according to analysis.
