Litecoin: Bullish Continuation Setup Points To Further Upside

Litecoin (LTC-X) has formed a nice bullish setup. After the recent projected leading diagonal formation into wave A/I, followed by an ABC correction in wave B/II, we can now see a bullish continuation developing within wave C or III.

After the most recent impulse into wave 1, followed by a short-term corrective pullback into the projected 59 support area for wave 2, Litecoin is now resuming higher within wave 3 of a new five-wave bullish impulse. This suggests that more upside can be seen, at least toward the 70–75 area. However, we should be aware of a potential wave 4 pullback along the way before another advance in wave 5 of C/III.

The bullish structure is also supported by the Litecoin Grayscale Trust (LTCN), which is now bouncing nicely back above an important daily trendline after completing the projected ABC correction. This recovery supports the impulsive strength already visible in Litecoin (LTCUSD).

On the 4-hour chart, LTCN could now be unfolding a five-wave impulse within wave A/1 of a larger rally in a minimum three-wave sequence, A/1-B/2-C/3. It is currently still in subwave iii of A/1, suggesting that further gains may be seen in Litecoin. However, traders should remain aware of a potential subwave iv pullback before the continuation higher in subwave v of A/1.