Litecoin (LTC) may rise one other 20% amid a uncommon pattern reversal breakout that has already resulted in LTC outperforming most crypto belongings in current 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 pattern continuation patterns, that means breaking out of their vary sometimes prompts the worth to maneuver within the route of their earlier pattern.
Litecoin shaped a symmetrical triangle sample between May 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.
But as an alternative, it broke above the higher trendline in early November, as proven beneath. According to Edwards and Magee, the authors of Technical Analysis of Stock Trend, the breakout transfer is uncommon, given solely 25% of symmetrical triangle breakouts have traditionally resulted in pattern reversals.
LTC/USD three-day worth chart. Source: TradingView
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 gap 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 might allow customers to buy, retailer, and use LTC alongside Bitcoin (BTC) and Ether (ETH) for funds.
LTC/USD three-day worth chart. Source: TradingView
The LTC breakout misplaced momentum because of the FTX collapse within the first week of November and its unfavourable affect on the broader crypto market. But, Litecoin resumed its upward pattern amid speculations about its reward halving in the summertime of 2023.
Related: Litecoin hits recent 2022 excessive versus Bitcoin — But 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 Trend, 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 by means of the cycle, Litecoin enters a bearish/distribution part like Bitcoin.”
LTC/USD worth efficiency earlier than and after halving. Source: TradingView/The Digital Trend
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 energy index (RSI) is popping “overbought.” The set off for the draw back transfer could possibly be the RSI crossing above 70 from its present studying of 68, as proven beneath.
LTC/USD three-day worth chart. Source: TradingView
LTC’s worth draw back goal involves be at round $40 within the occasion of a correction pattern, down about 50% from present worth ranges.
This article doesn’t comprise funding recommendation or suggestions. Every funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a call.
