Among large-cap cryptoassets, only binance coin has performed better, and litecoin’s year-to-date rally leaves the bitcoin price’s 40 percent advance in the dust. However, one team of crypto analysts says the sixth-largest cryptocurrency looks poised for a sell-off.
Writing in a note to clients on Wednesday, crypto brokerage BitOoda said that a downward wedge has begun to form on the litecoin chart, suggesting that the cryptocurrency could be on the verge of a short-term breakdown. That sell-off would likely cause the litecoin price – which currently holds near $80 – to crash below its near-term support line at $75.
But while Donovan’s analysis suggests that traders might be wise to take some short-term profits, a breakdown would not necessarily be a sign of long-term weakness in the cryptocurrency. Rather, it would be a “healthy” retracement given that the litecoin price has already surged more than 350 percent from its bear market low at $22.