Cryptocurrency analyst Rekt Capital delved into the performance of Litecoin (LTC) in the wake of its latest halving event. The analysis was nothing short of meticulous, highlighting key patterns and historical trends that could shape the cryptocurrency’s future. Here, we expand and elaborate on Rekt Capital’s observations, offering a comprehensive look at what may lie ahead for Litecoin.
Remarkably, Litecoin executed its pre-halving rally with surgical precision, hitting a snag at the orange diagonal resistance level just one month before the halving event. Since that point, the cryptocurrency has seen a significant pullback, declining by 53% at the time of Rekt Capital’s analysis.
However, it’s crucial to note that Litecoin has a historical tendency to retrace between 73% and 83% following its halving events. This suggests that the current retracement may not have reached its nadir, and there could be more downside to come.
Rekt Capital posits that Litecoin is likely to breach its current green Higher Low support level as it seeks to establish a new Accumulation Range. This is a critical phase where investors accumulate the asset at a relatively stable price before the next uptrend.
The behavior of Litecoin post-halving has varied in the past. The first post-halving period saw Litecoin plummet dramatically, finding a bottom within just one month. In contrast, the second post-halving period required several months for the cryptocurrency to establish a new generational bottom and Accumulation Range.
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The Bitcoin Factor
Interestingly, Rekt Capital also brings Bitcoin into the equation. Given that Bitcoin’s market behavior has been somewhat sluggish in this cycle, it could influence Litecoin’s post-halving trajectory. The slower pace of Bitcoin might imply that Litecoin could take a longer time to find its new Accumulation Range bottom.
The Road Ahead: More Capitulation Needed?
In conclusion, Rekt Capital leans towards the possibility that Litecoin will require a more extended period to find its new Accumulation Range. This could mean that the cryptocurrency may have to relinquish its current green Higher Low support level, necessitating further capitulation from investors.
As the crypto market continues to evolve, these insights offer valuable perspectives for traders and investors alike, helping them navigate the volatile landscape that is cryptocurrency investing.
You can view our Litecoin price prediction here.
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