Litecoin is displaying technical indicators that may suggest a potential major price movement, despite a recent decline to around $110.
Technical Analysis of Litecoin
Crypto analyst Tony 'The Bull' Severino highlighted key signals on monthly charts that mirror conditions preceding Litecoin's explosive rise in 2017. The Average Directional Index (ADX) for Litecoin has bounced above 20, which historically signals the beginning of strong trends.
Chart Formation and Historical Parallels
Litecoin has formed a multi-year symmetrical triangle pattern since reaching all-time highs in 2021. The price is now approaching upper resistance. A break above $130 would confirm the escape from the triangle and could lead to substantial upward movement.
Current Market Situation
Litecoin has declined 3.7% over the past 24 hours, continuing a gradual pullback from July peaks. The price is around $110. Technical analysts view this quiet phase as potentially preceding more volatile price action.
Technical indicators suggest that Litecoin may be positioning for a significant price movement despite recent declines. Historical patterns and current chart conditions create a backdrop that may predict upward movement if key resistance levels are breached.
