Litecoin (LTC) has shown volatility of late, reaching over $125 in July but then dropping back to the $110 mark. Current technical indicators may suggest a potential rise.
Current Market Trends
Since peaking in July when Litecoin surpassed $125, its price has dropped back to $110, confirming a multi-month trend of subdued price action.
Technical Signals for Litecoin
Crypto analyst Tony 'The Bull' Severino points to a key shift in Litecoin’s long-term momentum indicator: the Average Directional Index (ADX). On the monthly chart, the ADX has bounced near the 20 level, a threshold that historically marks the start of strong directional moves. The same signal appeared in 2017, just before Litecoin launched into a parabolic rally from under $4.
Adding fuel to the bullish thesis is the +DI (Directional Indicator), which is turning upward alongside the ADX, a combination not seen since Litecoin's major breakout nearly eight years ago.
Growth Prospects
The price chart also supports a possible inflection point. Since 2021, LTC has been wedged in a symmetrical triangle pattern, squeezing between long-term descending resistance and rising support. With the range narrowing rapidly and the price testing the upper boundary, this setup could be primed for a breakout.
For now, $130 remains the key level to watch. A clean move above it would signal a break from the multi-year triangle and potentially set the stage for a major rally—similar to what unfolded in 2017.
Litecoin exhibits intriguing technical signals that could suggest near-term growth. The current price levels and chart formations create an attractive potential for investors monitoring movements in the cryptocurrency market.
