Contributor
Posted: September 25, 2024
Despite the recent poor performance, Litecoin price predictions indicated a potential rally to revisit the July high of $76.78. However, caution is advised as current liquidation data suggests a fall may occur before the rise materializes.
Over the past period, Litecoin (LTC) has shown modest appreciation, increasing by 6.67% on a weekly basis and 2.27% on a monthly basis. The daily numbers show a decline of 1.22% and paint a bleak picture.
AMBCrypto analysis suggested that while the possibility of further losses looms in the ongoing trading session, signs of an impending recovery are becoming evident.
Litecoin price prediction
Litecoin is expected to rise and the trading price could reach $76.78.
This prediction was made in the wake of what AMBCrypto identifies as stop-hunting, a tactic in which large players manipulate prices to trigger stop-loss orders before taking advantage of the resulting move. .
Recently, SUI price momentarily broke above the upward resistance of an ascending triangle pattern in a classic stop-hunt scenario.
This ploy caused a temporary spike in prices, allowing large investors to sell at favorable prices before the market returned to its previous downward trend.
If this pattern holds, LTC is expected to return to the ascending triangle support level.
If the momentum at this level is maintained, LTC could rise to a new high of $76.78. This is a level with high levels of liquidity and indicates a strong recovery trajectory.
Source: TradingView
Market analysis shows continued bullish trend
Current market indicators suggest that bullish momentum remains active. As of this writing, both the Relative Strength Index (RSI) and the parabolic SAR (Stops and Reverses) indicate continued bullish activity.
Our trendline analysis in conjunction with the RSI predicted that Litecoin (LTC) could fall to the trendline support at $54.63 before rebounding higher.
This expected decline is consistent with technical forecasts and suggests a short-term decline preceded a significant rally.
At the same time, Parabolic SAR continues to show a bullish situation, which is indicated by the LTC price trading above the indicator dot.
Source: Trading View
This positioning confirms that buyers remain in control, and the current price retracement is likely only a temporary market correction before further upside.
Market clearing signals short-term decline
Liquidation is the forced exit of a trader’s position due to insufficient margin if the price moves in an unfavorable direction, indicating a short-term decline.
In recent developments, long traders have faced significant liquidations, with this group accounting for $64,23,000 of the $77.74,000 loss.
This surge in liquidations suggests that the LTC market is bracing for further price declines.
Source: Coin Glass
Read Litecoin (LTC) price prediction for 2024-2025
Current data indicates that Litecoin will temporarily drawdown to the ascending triangle support level.
However, a major rebound could follow, reinforcing the cyclical nature of market fluctuations.
Previous: Dogecoin miners ease selling pressure – what this means for DOGE Next: Crypto week ahead: AI tokens soar amid potential altcoin rally
Source link
