Litecoin (LTC) Price Alert: Potential Correction Looming Ahead
Litecoin (LTC) is facing a potential pullback in its price as it remains stuck in a bearish pattern. This could put a halt to the recent rally and push the altcoin’s value in a downward direction.
To compound matters, LTC currently lacks support from its investors, which may further exacerbate the losses. This lack of investor incentive is evident in the Network Realized Profit/Loss metric, which shows that LTC holders have experienced significant losses in the last 24 hours, signaling potential selling pressure.
Furthermore, the Mean Coin Age metric for Litecoin tokens suggests a decrease in hodling activity among investors, indicating a potential increase in supply circulation. Without the backing of investors, Litecoin’s price could experience a correction.
It is important to note that Litecoin’s price is currently following a rising wedge pattern, which is typically a bearish formation. This pattern, characterized by converging trendlines slanting upwards, suggests a weakening bullish trend and signals a potential price reversal with downward movement.
Based on the pattern’s target, Litecoin could see a correction of around 30.77% in the coming days, bringing its price down to $69. The declining volume further supports this bearish outlook.
However, there is a potential support level for LTC at $93, marked by the 61.8% Fibonacci Retracement. A bounce from this support floor could allow the altcoin to reclaim $100 and potentially invalidate the bearish thesis.
In conclusion, while the current trend suggests a potential deep pullback for Litecoin, the altcoin still has the opportunity to regain momentum if it can find support at key levels. Traders and investors should closely monitor these developments to make informed decisions.