Will Litecoin Retest The 2018 Price Lows?

Litecoin exactly the same as other altcoins, experienced a hard time considering the latest price drop in Bitcoin’s price. Since it is heavily correlated to BTC, will Litecoin retest the 2018 price low as it dropped by 41 percent over the past 30 hours? Let’s find out in today’s Litecoin news.

Overall, the price of the asset dropped by 70 percent since February but the price seems to be moving sideways at the time of writing. What is litecoin doing with this price movement is hovering around $31.50 and forming an ascending triangle that will eventually end up in a bullish break. The four-hour charts for Litecoin showed a new formation of an ascending triangle with two bottom touches and the pattern will be eventually completed in about 72 hours leading to a further breakout. There is a mild bullish case forming as well but there are still chances for the price of the altcoin to breach lower if the overall market drops.

The RSI rising higher and above the oversold zone will lead the support to a new bullish bias scenario to a bigger rise would push the price to the upper line of the triangle which is about 15 percent from the current price of $31. Another bullish pressure and breakout will cause the price to reach a resistance of $45 and $51 but as mentioned previously, if another bearish breakout happens, the price will drop directly to the previous bottom at $22. This could mean a 30 percent drop from the current price which is why analysis wonder will Litecoin retest the old levels from 2018.

Litecoin’s close relation with Bitcoin has jumped over the past 30 days and the 180-day correlation hit 0.8604 which is a new yearly high. With such a high degree of correlation, the price will likely follow Bitcoin. Because of the massive cut in the Bitcoin’s price, most of the altcoins have a bearish fate. Litecoin also belongs in this category since its returns have affected the users as well. Right now, Litecoin’s yearly returns equal to -27%. For now, Litecoin seems rather bullish because of the formation of an ascending triangle and it aims at the higher side including the $45 and $51 levels. However, the targets on the lower side, still include the 2018 lows of $22.