Connect with us
Active Currencies 14794
Market Cap $2,467,692,571,200.00
Bitcoin Share 51.25%
24h Market Cap Change $-0.87

Litecoin forms a trend reversal pattern, here’s where you can take profit

2min Read

Litecoin [LTC] formed an inverse head and shoulders pattern – a trend reversal formation that may set the asset for a 30% potential rally or reversal. Which way for LTC?

Litecoin forms a trend reversal pattern, here's where you can take profit

Share this article

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

  • LTC formed an inverse head and shoulders pattern.
  • Addresses with more than $10k increased.

After a strong rally in January, Litecoin’s [LTC] price action made consistent lows and highs, chalking an inverse head and shoulders pattern.

Notably, the stiff resistance and neckline of $102.58 have rejected the price a few times. However, a break above the neckline could tip bulls for more gains. 

Read Litecoin [LTC] Price Prediction 2023-24

Meanwhile, U.S. investors are currently glued on earnings season as they track Q1 earnings and results. Notably, the U.S. Flash Services PMI (Purchasing Managers Index) data will also be released on 20 April 2023. 

Collectively, the earning season and the PMI data can affect U.S. stock markets, USD pairs and could spill to USDT pairs, too, LTC/USDT included. Ergo, macro traders could track this front before making moves. 

A rally or likely price dump – Which way for LTC?

Source: LTC/USDT on TradingView

LTC’s price action chalked an inverse head and shoulders pattern, which may set LTC to rally based on the height from the head to the neckline. Also, a reversal may occur based on the same height. 

On the daily chart, the RSI and stochastic RSI retreated – evidence of increased selling pressure. But sellers may cool off if stochastic RSI hits the oversold zone. On the other hand, the OBV (On Balance Volume) has increased since mid-March, indicating genuine demand for LTC. 

If the trend persists, LTC could attempt to break above the neckline of $102.58, especially if Bitcoin [BTC] reclaims $29k and $30k price ranges.

As such, LTC could be tipped to hit $136.3 –  a 30% potential hike. Other resistance levels lay at $116.8 and $121. 

Alternatively, bears could push LTC in the opposite direction. Based on the pattern’s height, LTC could drop to $35, a swing low in March 2020. But sellers must clear hurdles at the ascending trendline, $70, $40, and Q4 2022 swing low of $50.

Addresses holding more than $10k increased

Source: Messari

Is your portfolio green? Check LTC Profit Calculator

According to Messari, addresses holding more than $10k worth of LTC rose from below 26k in mid-March to 37.9k at press time. The increment captures the underlying bullish sentiment, which set LTC to break above the neckline. 

Source: Messari

Moreover, LTC’s hash rate has increased since Q1 2023, rising from about 0.55 kH/s in early January to over 0.70 kH/s by the end of March.

The rising hashrate shows LTC became more secure and could improve investors’ confidence in the asset and prop up its long-term prospects. But investors should also track BTC’s price action before making moves.


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.