As a seasoned researcher with years of experience navigating the cryptocurrency market, I find myself intrigued by the current state of Litecoin (LTC). The recent 1% surge to $63.7 during U.S. trading on Tuesday is a curious development amidst a broader pullback in the crypto market.
Litecoin price jumped 1% to $63.7 during U.S. trading on Tuesday despite a general pullback in the crypto market. The bearish turnaround for most major altcoins showed a lack of momentum, indicating a temporary drop for buyers to stabilize from last week’s rally. However, the LTC price rebound could be linked to the sudden capitulation of short holders, a signal often interpreted as a potential recovery.
Litecoin Price Set to Challenge Multi-Year Support
Over the last five months, Litecoin’s price has been gradually adjusting due to a descending trendline, leading to a significant drop. This bearish shift caused the value to fall from approximately $112.8 to $63, representing a decrease of 45%. Simultaneously, the market capitalization has dived to around $4.77 Billion.
The moving average and trendline above served as a flexible barrier for potential Litecoin sellers, suggesting that those who bought LTC should consider selling during any price increase. If the downward trend continues, Litecoin’s price might decrease by 20%, potentially testing the support line of the triangle pattern that has been active since late 2018.
For Litecoin (LTC) owners, a possible retest to flatten the trend could be crucial. If this test results in a downward break, it might mark the end of a multi-year consolidation period favoring the bears if it persists. This break would then indicate an initial Litecoin price prediction target at around $40, followed by potentially $25.
LTC Price Eyes Stability as Small Investors Exit
For approximately two weeks now, the price of LTC has moved within a narrow range, hovering around the $65 mark. Even though there’s been a period of consolidation, a surprising liquidation incident took place where about 45,200 Litecoin wallets containing between 0.1 to 1 LTC experienced a decrease, which seems to indicate that smaller investors are choosing to sell their holdings.
As a researcher, I’ve noticed that when smaller or more speculative traders exit the market, it’s often referred to as a “shakeout.” Yet, this event seems to bring in long-term investors instead, which is a common transition that typically fosters a steady recovery trend for an asset. This dynamic, in essence, contributes to a healthier overall market landscape.
If the support line for Litecoin’s price remains intact, we might witness a significant change in direction, indicating a strong bullish comeback. Once this level is broken, it suggests a resurgence of bullish energy that could potentially push the price to reach around $80.
Read More
- SOL PREDICTION. SOL cryptocurrency
- ENA PREDICTION. ENA cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- USD PHP PREDICTION
- LUNC PREDICTION. LUNC cryptocurrency
- USD ZAR PREDICTION
- WIF PREDICTION. WIF cryptocurrency
- USD VES PREDICTION
- EUR CLP PREDICTION
- USD COP PREDICTION
2024-08-27 23:36