Litecoin (LTC) Sees Breakout: Analyzing the Chances of a 27% Increase

6 months ago 3

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Litecoin (LTC) price could be on the verge of noting considerable gains in the coming days following its breakout from the bullish descending triangle reversal pattern.

LTC investors support a rally, given that the cryptocurrency is far below its potential and is a good bet.

Is Litecoin a Good Catch?

Litecoin’s price tends to respond to investors’ actions, and by its looks, it could see a rise soon. This is because the LTC holders have exhibited a surge in their participation on the network.

The addresses conducting transactions have increased by 22.66% from 353,000 to 433,000 in the last three weeks. This rise in active addresses is the first noted in nearly six months, as the last time this happened was back in November 2023.

However, their increase in activity is in response to the potential showcased by the asset.

The Reserve risk indicator shows that Litecoin is in a good state to accumulate. This indicator assesses Bitcoin investors’ risk and confidence levels by measuring the ratio of Bitcoin’s price to the HODL Bank.

Generally, an indicator in the green area indicates confidence is high and the asset is an attractive bet. This is because the risk-reward ratio is rather high, incentivizing investors to accumulate.

Even though LTC is below the green area at the moment, the sentiment remains the same.

LTC Price Prediction: Rally Ahead?

Litecoin’s price can be seen breaking out of a descending triangle reversal pattern. A descending triangle reversal pattern is a bullish chart formation characterized by a horizontal support line and a descending trendline.

It suggests a potential trend reversal from bearish to bullish when the price breaks above the trend line. This is the case with LTC as well, trading at $81 at the time of writing.

Based on the aforementioned conditions, the altcoin could note a potential 27% rally to reach the target of $102 set by the pattern. However, it would need to flip the resistance at $86 into support first.

If this breach fails, LTC could fail to test the support at $79, losing, invalidating the pattern and the bullish thesis. Consequently, Litecoin’s price could drop to $76 and lower.

The post Litecoin (LTC) Sees Breakout: Analyzing the Chances of a 27% Increase appeared first on BeInCrypto.

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