Litecoin (LTC) has been going through a rough patch for the past few months as the price nosedived from a euphoric high of $366 to $88. For the past few months, the price has traded closely in a well defined triangle with a support line passing through the $88 mark. Currently, Litecoin (LTC) seems to be rebounding from this level to head towards the resistance line once again. It is not yet clear as to whether or not Litecoin (LTC) might be able to break out of the triangle during this attempt, but it certainly appears to be heading towards the upper side of the triangle for now, to break past the $100 mark in the near future.
Litecoin (LTC) is far from its all time high of $336 and it is not clear how long it will be before it can break out of this triangle to continue trading upwards. However, the RSI level is currently in the oversold territory. Every time that has happened in the past, the price has bounced back. We can expect a similar scenario to unfold at this point but Litecoin (LTC) may yet be due for another retracement before it finally breaks out. This would coincide with a retracement from the resistance line (upper portion of the triangle) between July and August.
While this period of sideways movement might be boring and unproductive for the mainstream investor, for institutional investors, it provides an opportunity to buy as much as they can before the next bullish wave. If history is any indication, Litecoin (LTC) should be able to make a new high around late 2018, along with the rest of the market. This is also supported by the fact that with every retracement cycle within the triangle, it becomes easier for Litecoin (LTC) to break out. This break out could be to the upside or the downside for all we know. However, recent developments in the market do not favor a downside breakout at this stage as it would lead to a period of prolonged bear market.
That means the price of Litecoin (LTC) could eventually drop below $50. Given the current mining costs, the investment billionaire investors have made in mining equipment, the deep recent market correction and the possibility of a Bitcoin ETF in the near future, it is unlikely for that scenario to unfold.
Even if Litecoin (LTC) were to drop to $50 or lower from these levels, that does not change anything long term as the fundamentals have not changed and the blockchain industry continues to thrive. Litecoin (LTC) has traded well against Bitcoin (BTC) since the beginning of the year. The price is currently trading at the middle of the bullish channel and could swing either way based on the future outlook of the market. However, given that it just touched the bottom of the channel in January 2018 and the oversold RSI conditions, the most likely scenario is that Litecoin (LTC) will continue upwards from here to hit the top of the channel by January 2019.