Litecoin’s value 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 towards the EUR for eleven consecutive weeks – the primary time ever!
It wasn’t solely the EUR that the greenback strengthened towards. In reality, it was a broad-based greenback energy, because it squeezed every thing in its approach greater.
Which means cryptocurrencies, too.
A few of the cryptocurrencies fared higher than others. For instance, Bitcoin nonetheless holds near its 2023 highs, shifting in a horizontal consolidation for months.
Nevertheless, another cash didn’t carry out so effectively. Litecoin (LTC/USD) is one in all them, as its value 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 isn’t 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 plenty of nerves and braveness to purchase such a dip.
Litecoin chart by TradingView
LTC/USD kinds a small inverse head and shoulders sample
A head and shoulders sample indicators a reversal. When it kinds throughout a bearish development, it indicators a possible bullish reversal.
The top of the sample pierced via the $60 stage earlier than bouncing. It’s sufficient for the sample to respect the principles, however is it sufficient to reverse such a strong bearish development seen in the course of the summer season months?
All in all, the primary conclusion after 9 months into the buying and selling yr is that Litecoin couldn’t maintain above $100. If it doesn’t construct vitality to strive once more, the trail of least resistance stays the draw back.
