• Litecoin (LTC/USD) is well on course to another bullish rally as bulls have defended the $64 support as the price retraced.
• Crypto analyst Michaël van de Poppe says the uptick will continue and LTC price could rise by at least 22%.
• Development activity on Litecoin is on the rise, with it recording $2.88 billion in transaction volumes after Bitcoin’s $3.98 billion.
Litecoin (LTC/USD) is showing signs of a potential rally as bulls have defended the $64 support as the price retraced. After cooling off from its recent gains, Litecoin initiated a short-term recovery above the support, indicating that the correction was contained at the $64 level. Crypto analyst Michaël van de Poppe believes the uptick will continue and that LTC price could rise by at least 22% from the current price level. To emphasise his point, the analyst notes that Litecoin is demonstrating strengths. He says he will be interested in some scalp trades at the $69 level, with options to go long around $66.75, targeting $78 and $84.
At the time of writing, LTC was trading at $67.48 while on a slight bear correction. But overall, development activity on Litecoin is on the rise. Santiment data indicates that activity grew strongly in September before peaking in October. As of December 27, Litecoin was the second most active chain, recording $2.88 billion in transaction volumes after Bitcoin’s $3.98 billion.
Incorporating the Fibonacci retracement levels on LTC daily chart, the token’s price initiated a recovery at the 38.2% fib level, which is around the $64 support. The formation of a bullish ascending triangle pattern on the 4-hour chart could be the catalyst of the rally. The triangle is a continuation pattern and indicates that the LTC price could surge to $78 level. The rising triangle is formed when a support level holds and the highs are formed at a descending rate, creating a slope.
While the overall market sentiment is still bearish, investors should note that the LTC price is forming a bullish pattern against Bitcoin. If the pattern holds, it could indicate that the coin is ready to resume its uptrend. If the coin can hold above the $64 support level, then it could spike to the $78 level.
Overall, the technical indicators suggest that Litecoin is ready to start another rally. The coin has already bounced off from the crucial support level and is ready to test the resistance levels. With the bullish pattern and strong development activity, the coin could soon be seen making major gains. Thus, short-term investors could get a good buy opportunity on the current retracement of the coin.