Friday, June 9, 2023

Litecoin Hits Six-Month High


It is probable that the price of LTC/USD will fall as a result of the formation of the classic bearish reversal pattern.

On November 9, Litecoin (LTC) saw daily gains of about 20%. This is the biggest level for LTC/USD since May 2021. This is as part of a broader cryptocurrency market surge fueled by inflation worries, according to experts.

In only three days, the 14th-largest digital asset increased by about 25%, bringing its price to nearly $250 on Coinbase. In the meantime, the entire value of cryptocurrencies has surpassed $3 trillion for the first time.

Bitcoin’s Influence

According to data from Coin telegraph Markets Pro, Litecoin’s continuing price gain was inspired by similar positive moves across the major digital asset markets.

On Tuesday, for example, Bitcoin (BTC) hit a new all-time high of $68,500. BTC is the world’s most valuable cryptocurrency by market value. Ether (ETH) hit a new all-time high of $4,840.

Only a handful major alternative cryptocurrencies (altcoins), such as Litecoin, performed better versus Bitcoin in the last 24 hours. According to Messari data, the heavily traded LTC/BTC instrument increased by over 14%. This indicates a shift of money from Bitcoin to Litecoin markets.

Based on a typical bullish reversal pattern known as a falling wedge, the technical outcome for the pair projected more gains ahead.

Falling wedges start out expansive at the beginning, but as the price falls, they begin to collapse. When the price breaks above the wedge’s top trendline, it signals a bullish confirmation. The breakout is usually seen as a signal for a rally toward the profit objective. This is located at a length equal to the wedge’s greatest height.

The most recent Litecoin increases saw the price break above the top trendline of its falling wedge. This indicates the possibility of more rises.

Therefore, the profit goal is around 0.006122 BTC. However, in the last three weeks, the Litecoin chart has shown a bearish divergence between rising prices and declining volumes. This suggests that the falling wedge breakout move may be weakening.

The Negative Direction

Litecoin’s price has climbed by more than 150 percent in terms of US dollars. This is since it peaked at $103 on July 20. However, the “silver to Bitcoin’s gold” cryptocurrency’s large positive increase has generated a negative reversal perspective. This indicates that its ascent is about to come to an end.

The rising wedge is the opposite of the falling wedge. At the bottom, it’s wide, but as the price rises, it becomes narrower. This is considered a bearish confirmation. It is when the price breaks below the lower trendline and targets levels with a length equal to the wedge’s height.

The wedge goal might move between $117 and $21 depending on where Litecoin starts its bearish breakout.

A definitive break above $250, on the other hand, might invalidate the rising wedge pattern. This puts LTC on track to reach $300 as its next price objective.

Vincent Sanchez
Vincent Sanchez
Vincent Sanchez currently writes articles for Cryptoconstellation. He completed his Msc in finance and had a successful career as an accountant. Vincent enjoys travelling and working out.

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