The entire crypto-complex has been under pressure since Bitcoin peaked at 69,000 in November 2021, but it looks like digital tokens could be building a bottom. In Litecoin, we see a potential Shoulder/Head/Shoulder bottom, that will be activated upon a break above the neckline at 55.87 for a rally towards at least 80.87. Ultimately, the next rally for elite cryptocurrencies should be much larger.
In the short term, a break above minor resistance at 52.40 will confirm that a firm test of the neckline resistance at 55.87 is near in the cards.
From an Elliott wave perspective, we saw a leading diagonal as wave 1 and wave 2 corrected exactly 61.8% of wave 1 and are ideally complete now. We should see wave 3 take over for the next impulsive rally towards 80.41 very close to the S/H/S target.
