Litecoin (LTC) might rise one other 20% amid a uncommon pattern reversal breakout that has already resulted in LTC outperforming most crypto belongings in latest days.

LTC’s not-so-bearish symmetrical triangle

LTC’s price broke out of what earlier gave the impression to be a bearish symmetrical triangle.

Symmetrical triangles are pattern continuation patterns, which means breaking out of their vary usually prompts the price to maneuver within the route of their earlier pattern. 

Litecoin fashioned a symmetrical triangle sample between May and November after dropping 70% to almost $40 within the prior buying and selling periods. Ideally, the LTC/USD pair might have resolved the sample by breaking under its decrease trendline.

But as an alternative, it broke above the higher trendline in early November, as proven under. 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 price 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 price up?

Litecoin’s symmetrical triangle breakout transfer began in late October. It coincided with MoneyGram’s announcement that it could allow customers to buy, retailer, and use LTC alongside Bitcoin (BTC) and Ether (ETH) for funds.

LTC/USD three-day price chart. Source: TradingView

The LTC breakout misplaced momentum as a result of FTX collapse within the first week of November and its damaging 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 price ‘halve’ earlier than the halving?

“Litecoin tends to rally in the months leading up to the halving,” famous market analyst, The Digital Trend, in his SeekingAlpha op-ed, including:

“Then, the price tends to stabilize before entering a lengthier and more substantial bull market. Then, around halfway through the cycle, Litecoin enters a bearish/distribution phase like Bitcoin.”LTC/USD price efficiency earlier than and after halving. Source: TradingView/The Digital Trend

Litecoin’s price might 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 might be the RSI crossing above 70 from its present studying of 68, as proven under.

LTC/USD three-day price chart. Source: TradingView

LTC’s price draw back goal involves be at round $40 within the occasion of a correction pattern, down about 50% from present price ranges.

This article doesn’t include funding recommendation or suggestions. Every funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a choice.


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