Litecoin Forms Bull Flag Pattern Near $85 Resistance

Litecoin has recently formed a potential bull flag pattern near its 20-day exponential moving average (EMA), with the cryptocurrency currently trading at approximately $84.54. This pattern emerged following a recovery from lows around $79, pushing the price towards short-term resistance. The bull flag scenario suggests a possible breakout, given the price's ability to hold above support and the narrowing consolidation.

The daily chart indicates that Litecoin is trading below the descending 20-day EMA, which is closely aligned with the flag’s upper boundary. This alignment may serve as a breakout zone, especially as the price approaches the $85.58 resistance level. The flag formation is supported by increasing volume, indicating sustained interest near current levels.

Trade parameters around this setup place the entry zone at $86, with a tight stop loss positioned at $83.5 to limit downside exposure. Take profit levels are defined at $92 for the first target and $105 as the extended target. This risk-reward structure reflects a measured approach in line with current market behavior. The 24-hour range between $83.94 and $85.58 has capped volatility while maintaining intraday structure. Price remains below key longer-term moving averages, which may act as dynamic resistance if momentum accelerates post-breakout.

The ongoing consolidation beneath the breakout level suggests that market participants are awaiting a decisive move. The MACD indicator highlights a converging setup with a narrowing histogram, supporting the base-building narrative. Litecoin’s consolidation phase is underpinned by volume spikes on recovery candles, showing support from lower levels. The structure formed in late June has since held a tight range, with the price not breaking back below the $83.94 support level, preserving the integrity of the flag formation.

While the price has yet to reclaim the 20-day EMA, repeated tests of this level may increase breakout probability. The trendline from the 50-day EMA also remains overhead, serving as an additional level to watch. Momentum indicators and price structure now align closely, narrowing focus on upcoming sessions to validate the bull flag scenario. According to the analyst's forecast, if the bull flag pattern holds and the price breaks above the $85.58 resistance level, Litecoin could target $92 and potentially reach $105. This scenario would mark a significant upward movement for the cryptocurrency, given its current trading range.