Litecoin Price Running Out of Gas After Meteoric Rally: Crypto Analyst

litecoin price cryptocurrency
The litecoin price has boomed in 2019. One crypto analyst says it can't keep this pace up much longer. | Source: Shutterstock

By CCN.com: The litecoin price has been one of the cryptocurrency market’s top performers in 2019, climbing a ridiculous 162 percent since the new year.

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.

Litecoin Price Likely to Crash Through Support – And That’s OK!

litecoin price crypto analysis
The sixth-largest cryptocurrency has climbed more than 150 percent in 2019. It might be running out of gas. | Source: CoinMarketCap

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.

BitOoda EVP Brian Donovan wrote:

“[W]e have seen a downward wedge forming over the last week or so. We look for potential breakdown of that $75 near-term support.”

litecoin price cryptocurrency technical analysis
Analysts say the litecoin price is forming a “downward wedge,” which suggests the cryptocurrency will drop below its $75 support line. | Source: BitOoda

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.

“LTC has rallied from the lows of last December from ~$22 roughly 350%. A short-term retracement would not at all be unlikely NOR would it be a bad sign for the token. Healthy pullbacks can and should occur in an asset that rallies this hard, this fast.”

LTC Bull: Triple-Digit Mark Not Out of the Question

Even so, not everyone is convinced that litecoin’s support level test will result in a breakdown.

Writing on Twitter, The Rhythm Trader set forth a more bullish scenario, arguing that if more volume rushes in to defend that support level – which until recently was a key resistance line – the litecoin price could quickly vault into triple-digit territory.

“If $LTC shows a little volume here, this could get really interesting with a break of $100 quick if this support holds.”

https://twitter.com/Rhythmtrader/status/1118218886988599302

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