Litecoin recovered well from the sharp drop suffered on March 12
Litecoin, better known as silver for Bitcoin digital gold, has risen more than 100% since its fall on March 12. However, this increase can be undone as soon as the currency is on the verge of an escape in a bearish pattern.
During the writing of this text 1 LTC was worth $ 46.65, with a market value of $ 3.01 billion, making it the seventh largest cryptocurrency in the world. The currency has had a negative performance of 4% in the last 24 hours. More of this drop may be coming with the rise of the bears’ power, stemming from a possible bearish trend formed in the last 52 days.
How this pattern evolves will decide where the price will go. The standard is reaching DMA 200 resistance [púrpura], which usually separates bulls from bears. As the LTC has not yet breached this level, the trend is still bearish for the currency. Combining this with the rising wedge pattern and its bearish break, the currency’s future looks bleak.
The first drop could drag the currency to $ 36.71, with the price dropping approximately 20% from the current price. The second drop, however, is deeper than the first, to $ 29.29, which would represent a 37% drop from the current price.
If the price succeeds in reaching the second goal, the entire gain since “Black Thursday” will be undone. In addition, buyers may also be facing resistance in the overbought zone, as indicated by the RSI indicator. At the time of this writing, the RSI had already started its journey towards the neutral zone and oversold.
Halving can be a savior in disguise, however, a ray of hope here is that the DMA 50 [amarelo] seems to be approaching DMA 200. Furthermore, the currency’s inherent correlation with Bitcoin can be both a benefit and a curse. Bitcoin halving, along with a correlation to a possible ATH (historic high), could help Litecoin’s case and cause an unexpected rise. While this may be an optimistic argument, the realistic target would be $ 36.71.
Source: AMB Crypto