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The anonymous crypto analyst Kaleo, closely followed by crypto investors, expressed belief that the prominent altcoin Litecoin (LTC) may have already reached its peak during its pre-halving rally. According to the analyst, the direction for LTC may now be downwards.
Analyst Suggests Litecoin Could Embark on a New Dip Journey
Kaleo proposed that Litecoin might be mirroring its price action during the second half of 2021, a period in which it surged over 187% just to go through a few months of a bear market. The analyst suggested that Litecoin recently retraced from its bear market trend line, due to LTC bulls failing to show momentum above $110.
“That’s why I went short on LTC: There was a clear return from resistance. The pullback after the last breakdown of the range incredibly resembles what we saw at the end of 2021. A pullback at that time ended with the price hitting new low levels,” he stated.
Kaleo, also considering LTC’s performance before the block reward halving event in 2019, indicated that the previous block reward halving marked the start of a downtrend for LTC. “The halving is approaching (around August 2). Although this has been exaggerated as a bullish narrative, this was not what happened in the past. Let’s take a look at what happened after the last block reward halving in 2019. It was a sell-the-news event and the price fell,” he noted.
Kaleo is also closely monitoring the performance of the Litecoin/Bitcoin pair (LTC/BTC). The analyst underscored that LTC/BTC falling below diagonal support signals a strong downturn in the short time frame. “We saw a clear break of support in the LTC/BTC pair in the short time frame,” he warned.
Warns About a Dead Cat Bounce
Returning to LTC’s chart against the US dollar, Kaleo suggested that the altcoin could experience a short-lived rally before resuming its downtrend. “When we take a close look at the price chart, LTC is currently standing at support against the US dollar. Any bounce from this support could be just a dead cat bounce,” he remarked.
At the time of writing, the leading altcoin is trading at $96.69, marking a 0.26% decrease over the last 24 hours.
