Litecoin (LTC) may rise one other 20% amid a uncommon development reversal breakout that has already resulted in LTC outperforming most crypto property in latest days.
LTC’s not-so-bearish symmetrical triangle
LTC’s worth broke out of what earlier seemed to be a bearish symmetrical triangle.
Symmetrical triangles are development continuation patterns, which means breaking out of their vary usually prompts the worth to maneuver within the course of their earlier development.
Litecoin shaped a symmetrical triangle sample between Could and November after dropping 70% to just about $40 within the prior buying and selling classes. Ideally, the LTC/USD pair may have resolved the sample by breaking beneath its decrease trendline.
However as a substitute, it broke above the higher trendline in early November, as proven beneath. Based on Edwards and Magee, the authors of Technical Evaluation of Inventory Pattern, the breakout transfer is uncommon, given solely 25% of symmetrical triangle breakouts have traditionally resulted in development reversals.
Litecoin adopted up with its symmetrical triangle reversal transfer decisively and now eyes a run-up towards $100, or one other 20% by December 2022.
This upside goal is measured after calculating the space between the triangle’s higher and decrease trendline and including the output to the breakout level (round $58 in Litecoin’s case).
Why is Litecoin worth up?
Litecoin’s symmetrical triangle breakout transfer began in late October. It coincided with MoneyGram’s announcement that it will allow customers to buy, retailer, and use LTC alongside Bitcoin (BTC) and Ether (ETH) for funds.
The LTC breakout misplaced momentum because of the FTX collapse within the first week of November and its damaging affect on the broader crypto market. However, Litecoin resumed its upward development amid speculations about its reward halving in the summertime of 2023.
Associated: Litecoin hits recent 2022 excessive versus Bitcoin — However will LTC worth ‘halve’ earlier than the halving?
“Litecoin tends to rally within the months main as much as the halving,” famous market analyst, The Digital Pattern, in his SeekingAlpha op-ed, including:
“Then, the worth tends to stabilize earlier than coming into a lengthier and extra substantial bull market. Then, round midway via the cycle, Litecoin enters a bearish/distribution section like Bitcoin.”
Litecoin’s worth may attain $180 by July 2023 if the halving fractal performs out as meant, as Cointelegraph lined right here.
The bearish take
Conversely, Litecoin can see a short-term correction as its three-day relative power index (RSI) is popping “overbought.” The set off for the draw back transfer may very well be the RSI crossing above 70 from its present studying of 68, as proven beneath.
LTC’s worth draw back goal involves be at round $40 within the occasion of a correction development, down about 50% from present worth ranges.
This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer entails threat, and readers ought to conduct their very own analysis when making a choice.