FX.co ★ Technical analysis of Litecoin for February 2, 2022

Litecoin has extended the correction from 413.60 to the 78.6% corrective target of the rally from 20.00 to 413.60. Such a deep correction isn't uncommon, but we already saw a similar correction in mid-July 2021, which we though was enough correction. However, the stronger USD has forced Litecoin back down to re-test this support and with a second failure at this support a solid bottom finally seems to be building for the next strong rally towards the all-time high at 413.60 and a break above here will trigger the Cup with Handle formation for a rally towards 800.

A break above resistance at 154 will be a strong confirmation that the next impulsive rally is in motion.