Technical outlook:
Litecoin climbed to the $55.00 high intraday on Thursday after finding some support around $50.00 on Wednesday. The crypto is seen to be trading around $54.00 at this point in writing and is expected to pull back towards $45.50 in the next few trading sessions. Bulls will be poised to hold prices above $40.00 to keep the medium-term outlook intact.
Litecoin seems to have just completed its larger degree corrective drop, which had begun from the $450.00 highs in May 2021. The corrective zigzag (5-3-5) corrective structure looks complete after printing lows at around $41.00 recently. If the proposed structure holds well, prices will stay above $41.00 and push through the $73.00 initial resistance in the near term.
Litecoin has now carved a lower degree upswing between $41.00 and $55.00 in the past few trading sessions. Ideally, prices should retrace towards $45.50, which is the Fibonacci 0.618 retracement of the above upswing. Bulls are expected to resume higher towards $73.00 thereafter. Once broken, it will confirm that bulls are back in control.
Trading plan:
Potential short-term drop through $45.50, then rally through $73.00 against $41.00
Good luck!
