Litecoin (LTC), one of the oldest and most popular cryptocurrencies, is showing signs of bull burst, according to a prominent analyst.
Christopher Inks Shares His Views on Litecoin (LTC)
Christopher Inks, a cryptocurrency trader and founder of TexasWest Capital, shared his bullish outlook for Litecoin in a tweet on May 21.
Inks suggested that Litecoin appears poised to challenge highs around $400, last seen in May 2021. Inks added that breaking above the green box, which represents a resistance zone between $90 and $100, will likely give him the expected minimum target of the weekly R1 pivot area, around $129.44.
The R1 pivot area is a technical indicator on a price chart that represents a resistance level above which price may struggle to break through. It is calculated using the formula:
R1 = (2 x Pivot Points) – Previous Daily Low
The pivot point is the average of the previous day's high, low and closing prices. The lowest price of the previous day is the lowest price of the day before it.
The R1 pivot area is one of three resistance levels used by traders to identify potential reversal points or breakout points. The other two levels are R2 and R3, which are calculated using different formulas.
Inks' tweet received positive feedback from his followers, who expressed their hopes for a Litecoin pump. One follower commented, "Great comment, I hope it gets higher. There's every reason for that."
Inks replied:
"There's every reason other than we haven't actually pumped yet. We'll see if we can pump, but it looks good right now."
One of the reasons that can support Litecoin's price is the halving event, which is expected to take place on August 3, 2023. The halving event is a preprogrammed feature of the Litecoin protocol, reducing the block reward for miners by 50% every 840,000 blocks, or roughly every four years.
*Not investment advice.