Litecoin (LTC) has shown mixed performance recently, with weekly gains of 6.67% and a modest 2.27% rise over the month. However, daily figures show a slight decline of 1.22%, signaling potential weakness in the short term.
Litecoin Price Prediction
According to an analysis by AMBCrypto, while further losses may occur during the ongoing trading session, signs of a recovery are becoming evident. Litecoin is expected to rally towards $76.78 in the near future, following what appears to be a stop-hunt—a market tactic where large players push prices to trigger stop-loss orders before reversing the trend to capitalize on subsequent movements.
If this pattern holds, LTC could return to its ascending triangle’s support level. However, sustained momentum at this support could push the price toward the forecasted $76.78, a key liquidity level.
Bullish Indicators Persist
Despite recent declines, the Relative Strength Index (RSI) and Parabolic SAR (Stop and Reverse) suggest that bullish momentum remains. The RSI indicates a potential dip toward $54.63, a key support level, before a rebound occurs. Simultaneously, the Parabolic SAR continues to signal bullish conditions, as LTC remains above the indicator’s dots, indicating that buyers still maintain control.
Market Liquidations Signal Temporary Declines
Recent liquidations suggest short-term downturns for Litecoin. Long traders have faced substantial liquidations, with $64.23k of the total $77.74k in losses coming from their positions. This increase in liquidations signals a potential drawdown toward the support level of the ascending triangle. However, this decline is likely to be temporary, with a significant rebound expected to follow, reinforcing the cyclical nature of the market.
In conclusion, while Litecoin may face short-term pressure, the overall market analysis points to a potential recovery with prices climbing toward $76.78 in the coming sessions.
