- 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 towards the EUR for eleven consecutive weeks – the primary time ever!
It wasn’t solely the EUR that the greenback strengthened towards. The truth is, it was a broad-based greenback power, because it squeezed all the things in its approach larger.
Which means 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.
Nevertheless, another cash didn’t carry out so nicely. Litecoin (LTC/USD) is certainly one of them, as its worth halved throughout 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 power) is so quick that it takes a variety of nerves and braveness to purchase such a dip.
LTC/USD varieties a small inverse head and shoulders sample
A head and shoulders sample indicators a reversal. When it varieties throughout a bearish pattern, 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 robust bearish pattern seen throughout the summer time 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 power to attempt once more, the trail of least resistance stays the draw back.