Ever since the SEC considered the spot LTC ETF filing and acknowledged it, the Litecoin price has been on the rise. The token has been displaying immense strength with a considerable amount of volume in times when major tokens like Bitcoin or Ethereum are facing huge upward pressure. This suggests the traders are highly optimistic about the next price action, which could elevate the levels by another 20% in the next few days.
The LTC price traded within a tight range below $75 for quite a long time, shifting the trader’s focus away from the token. Meanwhile, the November breakout attracted massive volume over the token, which helped in a significant rise in the volatility and the price. The LTC price has surged above $120 and is stuck within a range with equal bullish and bearish pressure. Hence, securing any of these ranges may shed light on the future trajectory of the token.
However, the question remains whether the LTC price breaches above the resistance at $130 or faces a rejection to drop below $120.
The daily chart of LTC suggests the price is stuck within a decisive symmetrical triangle and is heading to test the upper resistance. While the RSI has undergone a U-shaped recovery, the DMI levels raise some concerns. The +DI & -Di refrained from undergoing a bearish crossover, while the ADX has bottomed hard. This suggests the strength of the rally is pretty weak and hence, a rejection from the resistance could be fast approaching.
With this, the Litecon price is expected to trade within the pattern until it does not receive a massive influx of buying volume. A quick rise above $130 may cause a short-term upswing, which may further attract correction and bring the levels back within the range. Meanwhile, if the LTC price surpasses $130 and secures levels above $140, the bearish possibility may be dragged down a bit but not eliminated.
Hence, the traders are expected to remain vigilant over the Litecoin (LTC) price rally as the trade set-up points towards a consolidation while the bulls appear to be prepared to elevate the price by over 20%.
