- 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 largest 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. Actually, it was a broad-based greenback energy, because it squeezed all the pieces in its method larger.
Meaning 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.
Nonetheless, another cash didn’t carry out so effectively. Litecoin (LTC/USD) is one in every of them, as its value halved through 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 house. However the velocity of the decline (or the velocity of the greenback’s energy) is so quick that it takes quite a lot 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 pattern, it indicators a possible bullish reversal.
The top of the sample pierced by the $60 degree earlier than bouncing. It’s sufficient for the sample to respect the foundations, however is it sufficient to reverse such a strong bearish pattern seen through 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 attempt once more, the trail of least resistance stays the draw back.
