Litecoin Price Poised for Rally? ADX Indicator Signals Potential Surge

Litecoin (LTC) has shown significant price gains in July, exceeding 30%, although recent market sluggishness has tempered its momentum. However, analysts remain optimistic, predicting a substantial rally in the coming months. This optimism stems from the Litecoin Average Directional Index (ADX), a technical indicator used to gauge the strength of price trends. The ADX recently surpassed the 20 mark on the monthly timeframe, indicating the formation of a trend. Simultaneously, the positive Directional Indicator (DI+) found support at the ADX line and is rising. This pattern mirrors a similar occurrence in 2017, when the ADX crossing above 20, coupled with a rising DI+, preceded a remarkable 11,900% surge in LTC's price, from roughly $3 to $360. The current situation suggests a potential parallel: if the ADX continues its upward trajectory and sustainably breaks the 25 threshold, a strong rally could be confirmed. Market expert Tony Severino, a Chartered Market Technician (CMT), supports this bullish outlook. While the current LTC price hovers around $114.61, with a 1% increase in the past 24 hours, the ADX indicator suggests a promising future. The indicator's historical correlation with significant price movements makes it a key factor in forecasting Litecoin's potential for substantial growth. However, it's crucial to remember that technical indicators are not foolproof predictors and other market factors could influence the price. This analysis highlights the potential for significant gains, but investors should proceed with caution and consider their risk tolerance before making investment decisions. The past performance of LTC doesn't guarantee future results. Investors should conduct thorough research before investing in cryptocurrencies.

(Source: https://www.newsbtc.com/news/litecoin/this-litecoin-technical-indicator-crossed-a-critical-level/)