Litecoin’s price halved in less than three months. Buying the dip is risky despite a small head and shoulders pattern forming.
- 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 greatest rallies ever throughout summer season. 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 reality, it was a broad-based greenback power, because it squeezed every part in its approach increased.
Meaning cryptocurrencies, too.
A few of the cryptocurrencies fared higher than others. For instance, Bitcoin nonetheless holds near its 2023 highs, transferring 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 season 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 area. However the velocity of the decline (or the velocity of the greenback’s power) is so quick that it takes loads of nerves and braveness to purchase such a dip.
LTC/USD types a small inverse head and shoulders sample
A head and shoulders sample alerts a reversal. When it types throughout a bearish development, it alerts a possible bullish reversal.
The top of the sample pierced by the $60 stage earlier than bouncing. It’s sufficient for the sample to respect the principles, however is it sufficient to reverse such a robust bearish development seen in the course of the summer season 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 strive once more, the trail of least resistance stays the draw back.
