If this is true, Litecoin might kickstart a rally in December

Journalist

Posted: November 23, 2023

• Litecoin’s liquidation increased sharply when its price reached $71.
• Market indicators remained bullish, but a few metrics suggested otherwise.

Litecoin [LTC] witnessed a price decline over the last week, which sparked fear among investors. Though the previous week did not align with investors’ interests, the coming days might look different. This seemed to be the case as LTC was about to exit a time-tested bullish pattern.

Litecoin is planning a breakthrough 

According to CoinMarketCap, Litecoin’s price plummeted by more than 6.4% in the last seven days. At first glance, this might look concerning to many, but the ground reality was a bit different.

Crypto analyst Shan Belew recently posted a tweet highlighting the fact that Litecoin was on the verge of exiting a 6-year-long ascending triangle.

If everything works in the coin’s favor, after exiting the pattern, LTC’s price could reach new highs. Considering how close Litecoin is to going above the trend line, which is near the $85 mark, should investors expect a LTC rally in December 2023?

Litecoin 6-year ascending triangle. $LTC pic.twitter.com/a1vjH3z1c7

— Shan Belew Ⓜ️🕸 (@MASTERBTCLTC) November 22, 2023

A few challenges remain

The possibility of LTC going above the aforementioned mark seems likely to happen, as its daily chart has already turned green.

The coin’s value surged by more than 2% in the last 24 hours. At the time of writing, LTC was trading at $68.98 with a market capitalization of over $5 billion.

AMBCrypto then checked LTC’s liquidation levels and found that before LTC goes above $85, it has to cross a key resistance level.

Litecoin’s liquidation increased drastically near the $71 mark in the recent past, which caused a price correction. Therefore, the coin must successfully go above that level first in order to initiate a bull run.

Source: Hyblock Capital

However, things in the short term seemed bullish for the coin.

AMBCrypto had a look at LTC’s daily chart to find what could work in the coin’s favor. LTC’s price rebounded from the bottom limit of the Bollinger Bands.

Its Relative Strength Index (RSI) and Money Flow Index (MFI) both registered upticks, increasing the chances of a price uptick. Nonetheless, the MACD pointed out a clear bearish advantage in the market.

Source: TradingView

Read Litecoin’s [LTC] Price Prediction 2023-24

A few of the metrics also turned bearish. Despite the recent price uptick, LTC’s volume dropped, reflecting less interest from investors in trading the coin.

Its one-week price volatility also sank, which minimizes the chances of a continued uptrend. Another concerning metric was LTC’s MVRV ratio, which dropped sharply last week.

Source: Santiment