LTC price rallies 37% in November !! How Far can it go ??

The basic bearish setup tasks Litecoin’s charge doubtlessly falling to $200 in the coming sessions.

A 37% November charge rally in Litecoin (LTC) risks exhaustion as the “silver cryptocurrency” hints at forming a double pinnacle chart pattern.

The traditional bearish reversal setup seems when the fee types two consecutive peaks of almost the same height, with each upside pass meeting with a strong correction towards a frequent support level, called the “neckline.”

Typically, the price breaks under the help and falls via as an awful lot as the maximum height between the double top’s height and neckline.

So it appears, Litecoin is halfway through forming a double pinnacle pattern, as proven in the chart below.

image 2021 11 15T17 40 53 908Z

In detail, LTC’s fee peaked out on Nov. 10 near $295.50 — the first pinnacle — before correcting lower toward the neckline assist of around $249. That followed up with a rebound to $280 — the 2d top — eventually attracting profit-takers to reason about a minor correction, which is still underway.

Litecoin would need to extend its selloff to retest the neckline. Meanwhile, breaking below the assist level would set off the double pinnacle breakout setup, with the earnings goal sitting near $200.

Litecoin’s bearish reversal pattern is emerging when inflation in the United States has surged to a three-decade high, prompting buyers to search for a hedge across a number of monetary instruments.

For instance, the most actively traded gold futures these days posted to its quality week in six months, leaping 2.9% to $1,868.50 per troy ounce, after the U.S. Labor Department reported an expansion in the consumer fee index (CPI) by using 6.2% year-over-year. That marked the fifth-straight month of inflation above 5%.

Many buyers and/or merchants turned to Bitcoin (BTC) after perceiving it as a security internet towards rising inflation, stated Wilfred Daye, head of Securitize Capital — the asset-management arm of Securitize Inc — admitting that human beings have picked the cryptocurrency as a hedge no matter its concerning price volatility.

“We don’t have long adequate records to assert Bitcoin is indeed an inflation hedge,” Daye said, adding: Bitcoin’s increase has additionally helped altcoins rise in tandem thanks to its broader influence across the crypto market. Litecoin has been one of the beneficiaries of the rally, with its one-year correlation effectiveness with Bitcoin standing at 0.71 above zero, per data collected from Cryptowatch.

image 2021 11 15T17 42 57 297Z 1

As a result, issues over persistently higher inflation have acted as a tailwind for Litecoin features thru Bitcoin. That should rather play spoilers for the bearish double top setup introduced above — and validate a bullish pattern that has been active due to the fact that final weekend.

Litecoin “bull pennant” puts LTC target at $350

Dubbed a bull pennant, the bullish continuation sample seems when the price consolidates sideways inside a triangular structure after a robust rally upward. Traders verify a bullish breakout when the charge breaks above the triangle’s upper trendline with strong volumes.

In doing so, they eye the degree at length equal to the peak of the preceding uptrend (aka flagpole) as their income target. As a result, Litecoin’s price eyes an extended upside pass toward $350, as proven with the aid of the setup in the chart below.

image 2021 11 15T17 44 56 591Z

Meanwhile, failing to have a decisively bullish follow-through dangers activating the double pinnacle setup. That brings the “multi-month ascending trendline support” in the photograph as the subsequent draw back goal needs to be a bearish breakdown move; coincidentally, the goal is also near $200.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

 

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