In the past, there have been two major losses during the same period, and now it seems that a similar process is starting again. One of the most popular altcoins in recent months, Litecoin, which will undergo halving in early August, disappoints investors who were eagerly waiting for a new peak above $200 due to the overall market sentiment.
Litecoin (LTC) Price Analysis
The price of Litecoin (LTC) has fallen below a critical horizontal range, invalidating the previous breakout and indicating that the downtrend will continue. Despite this bearish outlook on the daily timeframe, short-term readings still suggest a slight upside potential. This is due to the presence of an ascending formation and the convergence of support levels just below the current price.
The daily chart shows that the price of LTC has been declining since reaching $115 on July 3rd. The decline brought the price below the $100 horizontal range, which was later confirmed as resistance. Therefore, the previous breakout above the range is considered a deviation.
Currently, the LTC price is trading at $91 and approaching an ascending support line at $80.
Is it a Good Time to Buy LTC?
In contrast to the daily chart, the four-hour short-term chart raises hopes for the resumption of the uptrend. The reason for optimism is the presence of a bullish formation known as a descending wedge. Furthermore, the price is approaching the confluence of the wedge’s support line and the 0.618 Fibonacci retracement support level. The principle behind Fibonacci retracement levels suggests that after a significant price move in one direction, the price will retrace or partially return to a previous price level before continuing in the original direction.
Therefore, it is possible for the region to initiate a bounce and ultimately break out of the wedge. However, this short-term bullish prediction can be invalidated if the price closes below $80.
Historically, halving events, such as the one expected to occur in early August, have often led to stable declines a few weeks before and after. Therefore, it would not be surprising if the price faces prolonged selling pressure during this halving period, based on historical data.
