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Analysis

Litecoin takes a page from its past; repeats pre-2019-rally pattern

Akash Girimath

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Litecoin takes a page from its past; repeats pre-2019-rally pattern
Source: Unsplash

The silver to Bitcoin’s gold, Litecoin, has had a rather tough time since its halving. The price of Litecoin has reduced by a massive 70% since its last peak in 2019. The coin trades at $45 and has a market cap of $2.82 billion, just below Bitcoin Cash and above, EOS. At press time, however, the coin exhibited the repetition of a pattern last seen before the rally that caused a price surge of 556%.

Does this mean a similar trend might play out for Litecoin?

Daily Chart

Litecoin takes a page from itself; repeats pre-2019-rally pattern

Source: LTC/USD TradingView

As seen in the above chart, the pattern is a falling wedge, a bullish pattern. The breakout has already occurred pushing the price toward resistance at $50. Breaching this would mean the continuation of the pattern seen in 2018, ranging from November to December. Obviously, this a long term play that Litecoin might undergo, if so, it has the potential for a huge pump in Litecoin’s price; possibly in the $65 to $100 ballpark.

This could occur over a period of four months. The first target would be $63; breaching this would put the price on a ride up to $78. At $78, the price will either move sideways or even retrace to $70. A further rally from here would put the price into its last target at $90 – $100.

An indication of why this might happen is the 50-day MA [Yellow line], which is currently supporting the price from further collapse. Any price movement above the $75 range would end the death cross and set up the stage for a golden cross. It should also be noted that the price of LTC fell by approximately 43% since the death cross.

Indicators

Litecoin takes a page from itself; repeats pre-2019-rally pattern

Source: LTC/USD TradingView

MACD indicator has the same characteristics as the first fractal formation [shown in the price chart above], further affirming the incoming rally.

Supporting the rally is the OBV for Litecoin, which is being supported at $236K. A bounce from this point [meaning more buyers] would push the price of Litecoin higher.

Conclusion

The upcoming rally has the following targets, $50, breaching this, LTC’s next target would be $63, followed by $78 and a retracement to $70. The next targets, if the momentum hasn’t dried out, would be $90 to $100.

Akash is a full-time cryptocurrency writer and an analyst at AMBCrypto. He is an engineering graduate with an avid interest in finance and economics. Attracted to the chaos of trading, Akash has invested in BTC, ETH and XRP for educational purposes.

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