Litecoin’s worth halved in lower than three months
Shopping for the dip is dangerous regardless of a small head and shoulders sample forming
The greenback’s rally must cease for cash like Litecoin to reverse fortunes
The US greenback registered one of many largest rallies ever throughout summer time. For instance, it gained in opposition to the EUR for eleven consecutive weeks – the primary time ever!
It wasn’t solely the EUR that the greenback strengthened in opposition to. In truth, it was a broad-based greenback energy, because it squeezed every little thing in its method larger.
Meaning cryptocurrencies, too.
A number of the cryptocurrencies fared higher than others. For instance, Bitcoin nonetheless holds near its 2023 highs, shifting in a horizontal consolidation for months.
Nonetheless, another cash didn’t carry out so nicely. Litecoin (LTC/USD) is one among them, as its worth halved in the course of the summer time months. It was buying and selling at $115 in July, solely to drop to $60 in lower than two months.
Such volatility shouldn’t be uncommon within the cryptocurrency house. However the pace of the decline (or the pace of the greenback’s energy) is so quick that it takes loads of nerves and braveness to purchase such a dip.
Litecoin chart by TradingView
LTC/USD types a small inverse head and shoulders sample
A head and shoulders sample indicators a reversal. When it types throughout a bearish development, it indicators a possible bullish reversal.
The pinnacle of the sample pierced by means of the $60 stage earlier than bouncing. It’s sufficient for the sample to respect the foundations, however is it sufficient to reverse such a strong bearish development seen in the course of the summer time months?
All in all, the principle conclusion after 9 months into the buying and selling 12 months is that Litecoin couldn’t maintain above $100. If it doesn’t construct power to attempt once more, the trail of least resistance stays the draw back.
