Journalist
Posted:
- Litecoin liquidation increased sharply when the price reached $71.
- Market indicators remained bullish, but some data showed otherwise.
Litecoin [LTC] witnessed a price drop in the past week, causing fear among investors. Although the previous week did not match investors’ interests, the coming days may look different. This seemed to be the case as LTC was about to exit a proven bullish pattern.
Litecoin plans a breakthrough
According to CoinMarketCapThe price of Litecoin has fallen by more than 6.4% in the past seven days. At first glance this may seem concerning to many, but the reality on the ground was a little different.
Crypto analyst Shan Belew recently posted a tweet highlighting that Litecoin was about to exit a six-year ascending triangle.
If everything works in the coin’s favor, the price of LTC could reach new highs after exiting the pattern. Considering how close Litecoin is above the trendline, which is near the $85 mark, should investors expect an LTC rally in December 2023?
Litecoin 6-year ascending triangle. $LTC pic.twitter.com/a1vjH3z1c7
— Shan Belew Ⓜ️🕸 (@MASTERBTCLTC) November 22, 2023
Some challenges remain
It seems likely that the LTC will rise above the aforementioned limit, as the daily chart has already turned green.
The value of the coin has risen by more than 2% in the past 24 hours. At the time of writing, LTC was trading at $68.98 with a market cap of over $5 billion.
AMBCrypto then checked LTC‘s liquidation levels and concluded that for LTC to break above $85, it must cross a key resistance level.
Litecoin liquidation rose dramatically in the recent past to around $71, causing a price correction. Therefore, the coin must first successfully break above that level to initiate a bull run.
Source: Hyblock Capital
However, in the short term, things looked optimistic for the currency.
AMBCrypto looked at the daily chart of LTC to discover what could work in the coin’s favor. LTC‘s price recovered from the lower bound of the Bollinger Bands.
The Relative Strength Index (RSI) and the Money Flow Index (MFI) both recorded increases, increasing the likelihood of a price rise. Nevertheless, the MACD pointed to a clear bearish upside in the market.
Source: TradingView
Read Litecoins [LTC] Price prediction 2023-24
Some metrics also turned bearish. Despite the recent price increase, LTC volume declined, reflecting less investor interest in trading the coin.
One-week price volatility also fell, minimizing the chances of a sustained uptrend. Another concerning statistic was LTC‘s MVRV ratio, which fell sharply last week.
Source: Santiment