Litecoin hits 6 month high as LTC price rises 20% in 24 hours

Litecoin (LTC) posted daily gains of nearly 20% on Nov. 9, its highest level for LTC / USD since May 2021, amid a broader cryptocurrency market rally that analysts attribute to inflation fears.

The 14th largest digital asset rose just over 25% in three days, pushing its price to nearly $ 250 on Coinbase. Meanwhile, the total value of cryptocurrencies reached nearly $ 3 trillion, the highest level ever.

Bitcoin influence

Litecoin’s ongoing price rally was inspired by similar upward moves in major digital assets, data from Cointelegraph Markets Pro shows.

Bitcoin (BTC), the world’s leading cryptocurrency by market capitalization, rose to a new record high of over $ 68,500 on Tuesday. Ether (ETH) also hit an all-time high of over $ 4,840.

Top 15 cryptocurrencies in the last 24 hours. Source: TradingView

Nonetheless, few top alternative cryptocurrencies (Altcoins) outperformed Bitcoin in the past 24 hours, including Litecoin. Data provided by Messari showed that the heavily traded LTC / BTC instrument rose nearly 14%, suggesting an increase in capital migration from Bitcoin to Litecoin markets.

The pair’s technical outlook indicated further gains based on a classic bullish reversal pattern known as the falling wedge.

Falling wedges start high but contract as price moves down. A bullish confirmation comes when the price breaks above the upper trendline of the wedge. Analysts typically interpret the breakout as a signal for a rally towards the profit target, which is the maximum height of the wedge.

LTC / BTC weekly price chart with falling wedge setup. Source: TradingView

Recent Litecoin gains broke above the upper trendline of the falling wedge, opening the prospect of additional upside potential.

The profit target is around 0.006122 BTC. On the flip side, the Litecoin chart has seen bearish divergence between its rising prices and falling volumes over the past three weeks, underscoring that the falling wedge breakout movement could be weakening.

Another Litecoin wedge, but bearish

Litecoin price in US dollars has rebounded more than 150% after hitting its low near $ 103 on July 20, as its rise is due for a hiatus.

Related: Litecoin transactions near all-time high after gaining ground in consumer finance

Called the ascending wedge, the pattern is the complete opposite of the descending wedge. It starts further down, but begins to shrink as the price rises. Bearish confirmation comes when the price drops below the lower trendline and then moves to levels with a length equal to the height of the wedge.

LTC / USD 3-day chart with rising wedge setup. Source: TradingView

Depending on the level from which Litecoin initiates its negative breakout, the wedge target can shift between $ 117 and $ 21.

Conversely, a critical breakout above $ 250 would risk invalidating the rising wedge pattern and getting LTC on track to test $ 300 as its next target price.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading involves risk, so you should do your own research when making a decision.

About Veronica Richards

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