As signs of “silver cryptocurrencies” create a twin top chart pattern, the November 37% price hike of Litecoin (LTC) is on the way
The typical bearish setup occurs when the price makes two successive peaks of almost the same duration, with each upward assembly having a significant correction toward the customary support level, known as the “neckline.”
Typically, the price falls below the support and falls in proportion to the high point between the peak and neckline of the double top.
As illustrated in the chart below, Litecoin appears to be in the midst of forming a double top formation.
In more detail, the LTC price came out on 10th November near $ 295.50 – the initial high – before adjusting to the neckline support of around $270, which is now ongoing.
To re-evaluate the neckline, Litecoin will need to extend its selloff. At that time, a break below the support level will trigger a double standard exit setup, with the goal of keeping the profit close to $250.
The bearish Litecoin pattern appears when the United States inflation rate has grown to thirteen years, pushing investors to seek hedge in a variety of financial products.
For example, the gold futures market recently hit a six-month high, rising 2.9% to $1,868.50 per troy ounce after the US Department of Labor reported a 6.2% annual increase in the consumer price index (CPI). as well as year. -year This is the fifth month in a row that inflation has exceeded 5%.
According to Wilfred Daye, head of Securitize Capital – the asset management arm of Securitize Inc – which allows consumers to choose cryptocurrency as a cryptocurrency, many investors and/or traders are turning to Bitcoin (BTC) as a safety net in the face of inflation notwithstanding the fact that price variations are a concern.
LTC/USD 1 Day Price Chart: Source- Coinmarketcap.com
“We don’t have a long history of claiming that Bitcoin is a barrier to inflation,” Daye said, adding, “I would say that gold is still the best barrier to inflation right now.” However, Bitcoin as a deterrent to inflation is a terrific new idea – people love new ideas.
Because of their greater effect in the crypto industry, altcoins have risen to prominence as a result of Bitcoin’s ascent. Litecoin has benefited from this cycle, with its one-year Bitcoin affiliate performance standing at 0.71 above zero, according to Cryptowatch data.
As a result, Bitcoin earnings from Litecoin have been fueled by fears about continuous inflation. This could play a role in the above-mentioned double-digit bearish setup, as well as confirm the bullish pattern that has been active since last weekend.
A bull pennant is a bullish continuation pattern that appears when the price moves to the sides inside a triangle structure behind a strong upward curve. Traders confirm a bullish explosion when the price crosses over the top triangle’s trendline line with high volume.
As a result, they see a profit margin equal to the length of the previous upswing (also known as the flagpole) as a level of length equal to the length of the prior uptrend. As a result, the price of Litecoin is expected to grow further to $ 350, as shown by the set in the chart.
At the same time, failing to have a strong follow-up risk opens the door to a double standard setting. That brings “months-up rising trendline support” into play as the next downward trend objective if there is a bearish slide; coincidentally, the target is also close to $250 USD.