Litecoin has broken a crucial support level, suggesting that the bearish trend may continue and will not be affected by the upcoming halving.
Although this rally fails to reflect the impact of the halving, it does have the potential to break through $150 and reach $200.
Litecoin is just one step away from its most important upgrade: the halving! The reward for miners is halved, and eventually, the issuance of new LTC tokens is also halved. This is generally considered a bullish factor for cryptocurrencies that use the Proof-of-Work consensus mechanism. In addition, the pre-halving period also sees a significant increase in the value of the cryptocurrency.
Now that the halving is just a few days away, the LTC price keeps falling and has not been able to recover the lost ground. Therefore, it is assumed that the halving effect may have faded, but in reality, the price is accumulating gains and will break out after reaching the edge of consolidation.
The current trading setup indicates a potential breakout setup due to the formation of an ascending triangle pattern. The price has risen 150% from the recent lows and could be poised to rise another 180% if it breaks above the overhead resistance. As mentioned above, the price is trading inside an ascending triangle on the weekly timeframe. This, combined with the recent surge in volume, suggests a potential trend reversal and an increase in volatility that will shake out weak buyers.
Therefore, a minor pullback to $80 seems imminent, which could initiate order blocking activity. Moreover, a breakout above the $110 resistance could push LTC price to an initial target of around $190, which could be followed by an attempt to reach levels around $330. Conversely, a break below $75 could activate the bearish scenario, so traders need to remain vigilant if the bulls fail to trigger a reversal at the support level.
