Litecoin’s Descending Wedge Breakout: Bulls Charge Toward $96 Target in 2025

Litecoin's chart just flashed a classic bullish signal. A descending wedge pattern—that tightening coil of lower highs and lower lows—has finally snapped. The breakout triggers a technical roadmap pointing straight toward $96.

The Technical Setup

For weeks, Litecoin traded within that converging wedge, a pattern often preceding explosive moves. The recent push above the upper trendline wasn't just a blip. It was the confirmation bulls needed, signaling exhaustion of the prior downtrend and a potential reversal of fortune.

Momentum Shifts

Volume is picking up behind the move, adding credibility. The $96 target isn't plucked from thin air; it's derived from the measured move of the wedge's height projected upward from the breakout point—textbook technical analysis, for what that's worth in a market that treats textbooks as suggestions.

The Road Ahead

Nothing's guaranteed. The path to $96 faces immediate resistance levels that need to be conquered. But for now, the structure suggests the bears are on the back foot. Litecoin's move cuts through the recent pessimism, offering a clear, quantifiable objective for the first time in a while. Just another day in crypto—where the most reliable pattern is the one that makes the most people money until it doesn't.

Descending Wedge Structure Signals Potential Turning Point

Litecoin’s 4-hour chart shows a clear descending wedge pattern, formed by a steeper downward resistance trendline and a gradually declining support line. Price has been compressing within this structure since late November, indicating weakening bearish momentum. The recent candles show buyers stepping in from the lower boundary, suggesting accumulation pressure building near the support zone.

Currently, the LTC approaches the resistance line of the formation at the $77-$79 level. A breakout beyond the declining resistance line will be highly supportive of a trend reversal. A possible upside trend movement to $96-$98 levels has also been indicated by the projection box in the graph, which corresponds to an approximate upmove of 25% from the breakout level.

On the flip side, in the event of rejection within the resistance trend-line, the price may test the lower part of the wedge support level at $71-$72. A breach of the same might make Litecoin vulnerable to weakness in the downside towards $69. However, as long as the price holds within the boundaries of the wedge, along with higher reaction lows, the trade is likely to favor a breakout setup.

Indicators Show Gradual But Controlled Momentum

The MACD indicator becomes bullish as the MACD line crosses above the signal line. The histogram becomes positive. This does not imply any sign of a breakout. It suggests that momentum is moderate. This does not imply any sign of a breakout.

The RSI is trading close to 54, somewhat above the neutral level of 50. Moderate support from the bullish forces, without any indication of overexuberance, is evident at this level. Since the RSI is not close to the overbought levels, there is also room for further upside action for Litecoin.