Many cryptocurrencies showed signs of strength In recent weeks, but Litecoin has been relatively calm. After climb over $ 125 In mid-July, Litecoin began to fade, gradually decreasing to around $ 110. This price withdrawal, although not particularly dramatic, extended the tight consolidation model of Litecoin and hesitant movement.
However, the recent reappearance of a new technical signal on the monthly graph could suggest that this quiet phase is calm before a storm for the action of Litecoin prices.
Tony “The Bull” points to the 2017 familiar trend
According to Crypto Tony analyst “The Bull” Severino, the Litecoin average directional index (ADX) on the monthly time of candlesticks has still rebounded at level 20. The reaction to this apparently average threshold is important because most often, he reported the start of a powerful trend for Litecoin.
Specifically, Severino pointed out to Similarities with the ADX signal which preceded the explosive rally of Litecoin from the price level of $ 3.5 in 2017. In the current state of things, the directional indicator + DI (green line in the graph below) begins to withdraw from its recent low and shows signs of force by bouncing on the ADX (purple line in the graph below), behavior that imitates similar.
He notes that in fact, when the ADX oscillated below 20 during most of the 2020 cycle, Litecoin managed only a shallow and short -lived rally. The current re -emergence of resistance to trend, with the ADX and + DI, both from the soil, suggests that something structurally different is formed now, and it could reflect the bullish configuration almost eight years ago.
The graphic model shows a multi -year price pressure
The monthly monthly litecoin table adds another layer to the technical image. As the graphic above shows, the Litecoin price has formed a long-term symmetrical triangle model, compressing between downward resistance and growing support from its top of all time in 2021. This corner has tightly In recent months, and the price is now in a hurry near the higher trend line.
When these graphic models are resolved after years of spiral, they often lead to decisive movements. And when such a price compression combines with the strong resistance of trends in the Adx indicator, as it does now, it becomes even more convincing. As such, this convergence of the technical signal alongside the graphic motive opens the scene for a possible repetition of the rupture conditions of 2017.
If this historical comparison takes place, Litecoin could be on the edge of a substantial increase movement. Currently, the largest price level to break is $ 130, as this would mean that Litecoin finally exceeds the higher trend line of this symmetrical triangle model.
At the time of writing Litecoin is negotiated at $ 110down 3.7% in the last 24 hours.
Adobe Stock star image, tradingView.com graphic
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