Litecoin (LTC) experienced a significant price drop last week, causing concern among investors. Although LTC seems to have deviated from its proven upward momentum, the future may hold different possibilities.
According to CoinMarketCap, Litecoin’s price has dropped by more than 6.4% in the past seven days. A crypto analyst noted that Litecoin is currently in the midst of breaking out of its six-year bullish triangle.
It is expected that LTC will become advantageous for investors in the coming days and rise above the trend line near $85. In the past 24 hours, LTC has shown an increase of over 2% and was trading at $68.98 with a market cap of $5 billion at the time of writing.
According to the analyst, for LTC to enter a bullish run, it first needs to surpass an important resistance level at $71. The liquidation of Litecoin has significantly increased near this level, leading to a correction in price.
In the short term, the situation appears to indicate a bullish trend for the cryptocurrency. When analyzing LTC’s daily chart, indicators such as RSI and MFI show an upward trend, while MACD indicates a bearish market. The decrease in trading volume and price volatility of LTC may reduce the likelihood of continued upward movement.