Litecoin Shows Resilience and Potential for Upside Amidst Key Developments

• Litecoin’s price declined from its peak of $115 in July 2023 to a low of $56 in August.
• A higher low was created in Litecoin’s price, indicating an ascending support trendline in place for nearly 600 days.
• The ascending support trendline aligns with a historical horizontal area that has served as support and resistance for LTC.

Litecoin’s price journey over the past few weeks reveals a notable decline from its peak at $115 in July 2023. This descent led to a low point of $56 in August. Following this dip, Litecoin initiated a brief recovery before witnessing another downturn. However, what stands out is the creation of a higher low (marked in green).

This upward bounce in Litecoin’s price confirmed the existence of a long-standing ascending support trendline, which has been in place for nearly 600 days. Interestingly, this trendline aligns with a horizontal area that has historically served as both support and resistance for LTC.

In a recent announcement, the Litecoin team disclosed that the cryptocurrency’s mining difficulty had reached an all-time high. This development signifies the network’s growth and increased maturity.

Moreover, the team revealed that a staggering 18,000,000 ordinals have already been inscribed on the Litecoin network, further demonstrating its robustness and utility.

Litecoin’s Price Outlook

While the analysis of the weekly timeframe does not offer a definitive confirmation of Litecoin’s price trend, a closer look at the wave count leans toward a bullish scenario.

The Elliott Wave theory, a tool used to analyze recurring long-term price patterns and investor psychology, suggests that Litecoin may have completed a five-wave upward movement, followed by an A-B-C corrective structure initiated in June 2022.

According to this scenario, Litecoin embarked on another upward movement (highlighted in white) in September 2023. If these upward movements maintain their current length, LTC could potentially experience a 75% surge, targeting the next resistance level at $122.

Despite the optimistic outlook for Litecoin’s price, it’s vital to acknowledge that a dip below the September 2023 low of $57.30 (indicated in red) could invalidate the bullish scenario. In such a scenario, Litecoin might witness a 30% decline, finding support at the $48 level.

LTC’s recent price bounce off crucial support zones and positive indicators on lower timeframes hint at potential price strength. However, investors must remain vigilant and consider potential downside risks as they navigate the cryptocurrency market.