Veteran cryptocurrency trader Ali cautioned that Litecoin is looking vulnerable following its recent sharp decline.
In a tweet today, Ali noted that Litecoin’s technical outlook appears challenging after the cryptocurrency failed to hold above its recent highs.
- If selling pressure persists, Litecoin could drop towards the key support level of around $38.
- This would confirm a bear-flag breakdown, a pattern that typically leads to further downside.
- At the time of writing, Litecoin has crashed 13.34% lower over the past 24 hours.
- The cryptocurrency is currently trading around $65.25 as it continues to bleed out.
The trader’s analysis highlights the precarious situation facing Litecoin after its latest leg lower. The bear flag that appears to be taking shape on its chart is a decidedly negative technical formation.
A decisive break below $38 support would open the gates for a potential decline towards the next major level around $25. Litecoin bulls need to see a sharp reversal back above $70 soon to invalidate the bearish momentum.
In summary, Litecoin is on shaky ground following its latest double-digit plunge. Traders should watch for a break of the $38 level to confirm the emerging bear flag pattern and renewal of the prevailing downtrend. Without a quick recovery, additional losses look likely for the major altcoin.
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