Cryptocurrencies experienced significant losses following the recent BTC correction, with declines exceeding 20%. A 30% drop for Litecoin was anticipated, and the price pullback wasn’t surprising for investors following the rising wedge pattern. What will happen next?
Litecoin (LTC)
LTC’s price had a strong start to the second quarter after obtaining permission for Coinbase derivative contracts earlier this month. However, the market-wide weakness, exacerbated by rising geopolitical tensions for about a week, also led to a decline in LTC prices. The rising wedge promised a 30% drop, and it materialized.
Now, bulls are looking for signs of a comeback. RSI and MACD are giving early signals, and the Relative Strength Index is about to surpass the neutral zone. RSI measures the speed and change of price movements, while MACD reflects momentum and trend, indicating an impending rise.
Investors are optimistic about a rise as the total transaction volume on the network has increased for the first time in a long while. Moreover, Bitcoin prices have started testing $64,000 after closing above $62,000.
As average volume increased by 168%, and MACD and RSI turned upward, LTC today attempted to break above $80. However, the unpredictable nature of cryptocurrencies suggests it’s too early to celebrate.
LTC Price Forecast
Bulls defending the $77 support level have initiated a new push towards $81 today. At the time of writing, the popular cryptocurrency is trading at $80.72. BTC is also attempting an upward move from $62,000. If LTC bulls can hold the $79 and $77 support levels, a new attempt at $86 could occur in the coming hours.
However, if the $79 and $77 support levels are lost, the optimistic scenario will be shelved, and bears will strive to pull the price down to $71. The decline target of the rising wedge has largely been met; if a pullback to the next support occurs, it would signify the completion of the formation’s target.
