Litecoin The price seems to be risking a possible steep correction. The realization of this bearish risk in the larger time frame could ultimately trigger a collapse of up to 65%. Here are the technical details that investors should pay attention to.
Litecoin price Between April 1 and June 12, it has already lost an average of 64%, falling from $128 to $51. This steep correction was followed by a recovery phase that boosted LTC by 62% in the next three months.
Thus, Litecoin price action between April and September led to the formation of a bearish flag on the charts, a bearish continuation pattern, signaling further losses ahead. As the name of this formation suggests, the pattern is simply falling ‘upside down’ and resembles a flag on a pole.
In this scenario, the 64% correction flagged the flag, while the 62% rebound rally flagged as higher highs and higher lows.
The setup predicts that the bearish trend for Litecoin price will continue. The target for this technical model is obtained by measuring the height of the flagpole and estimating it from the bottom of the flag. It reveals that starting from a breakout point at $55, LTC could drop to $19.74. However, a conservative target would be $24.
Koinfinans.com As we have reported, market conditions indicate that investors should pay attention to the liquidity of $ 41.68 and below. If Litecoin price drops below this level and quickly recovers, investors should consider putting an early end to the downside.
On the other hand, if Litecoin price produces a daily candlestick above $64.43, which is the mid-point of the $54.40 to $74.47 range, it will indicate a weak selling side. Moreover, this move would invalidate the bearish thesis for LTC by allowing the bulls to take control.
In such a case, traders can expect Litecoin price to attempt to retest the high range at $74.47.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.