– Litecoin price is likely to slide 10% before holders can consider accumulating.
– A sweep of the range low at $56 will be the first sign that LTC is forming a bottom.
– A quick recovery above $56, coupled with the shift in market structure, will confirm a potential bounce play.
– This development could see LTC rally 52% and tag the range’s midpoint at $85.
Litecoin (LTC) price has
not shown strength after the January 3 crash, indicating that investors are engrossed in the newer coins.If the crypto market continues to move sideways, LTC is likely going to slide lower before any buyers show up.
Also read:
Bitcoin spot ETF approval could come as soon as Tuesday, new filings hint
Litecoin price likely to shed more weight
Litecoin price created a range, extending from $56 to $115, as it crashed 51% between July 3, 2023 and August 17, 2023.Since then, LTC has hardly recovered and has largely traded below the midpoint at $85.
After its breakout from the wedge formation, Litecoin price crashed 13% and currently trades at $64.The lack of LTC bulls is likely going to push the altcoin lower to target the liquidity resting below equal lows formed on September 11, 2023, and January 3 at $57 and the range low of $56.
A sweep of the aforementioned level is where smart money is likely to step in.If Litecoin price recovers above the range low of $56 and produces a higher high above the last key swing high, it would confirm the emergence of bulls.In such a case, LTC is likely to kickstart a 23% rally to the daily resistance level of $68.
A flip of this level could see Litecoin price attempt a retest of the weekly resistance level at $77 and, subsequently, the range’s midpoint of $85.
Due to the potential ETF approval next week, investors need to be cautious of heightened volatility.The above-explained sweep and reclaim of the range low could occur in a single daily candlestick.
Also read:
XRP price falls to two-month lows despite Grayscale adding Ripple to its Digital Large Cap Fund
LTC/USDT 1-day chart
On the other hand, if
Litecoin price is rejected at the range low of $56, it will invalidate the bullish thesis.
In such a case, LTC could continue heading lower and tag the $50 psychological level after a 10% correction.
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