• Litecoin (LTC) market has enjoyed a bullish outlook one month toward the third halving event.
• In the past two weeks, Litecoin price has rallied nearly 50 percent and is currently trading above a key resistance level around $100.
• Crypto traders should take note of possible bull traps at current levels in the Litecoin market.
Litecoin Price Analysis
The Litecoin (LTC) market has continued to enjoy a bullish outlook one month toward the third halving event. In the past two weeks, Litecoin price has rallied nearly 50 percent to trade above a key resistance level, around $100. Popular crypto analyst Ali (Twitter: @ali_charts) highlighted that crypto traders should take note of possible bull traps at current levels in the Litecoin market. The 30-day Market Value to Realized Value (MVRV) has hovered around 35 percent since the recent weekly LTC breakout.
Since hitting its all-time high of $420 in 2017, it took nearly three years for Litecoin’s price to reach back at this level again. Despite this protracted bearish trend, Bull’s never gave up on their dreams of seeing LTC hit new highs post-halving event scheduled for August 5th this year. This optimism was reflected with LTC’s impressive performance over the past few months as it surged from $50 mark to well over $100 and currently trades at $117 per coin according to CoinMarketCap data.
Possible Bull Trap?
Technically, Ali noted that if Litecoin’s price were to suddenly retract 40 percent from current levels, then it would trade around $60 in the coming weeks which would significantly liquidate long positions and potentially lead to panic selling across exchanges globally. The analyst warned that such a scenario is very much plausible given that MVRV 30D often exceeds 30% mark before any major retracement takes place in LTC’s price action.
What’s Next For LTC?
It remains unclear whether bulls can manage break through logarithmic downtrend resistance or not but regardless of what happens post-halving, investors should brace themselves against any unpredictable volatility during these tumultuous times as prices may skyrocket or crash depending on how events unfold over next few days/weeks/months ahead!
Overall, there are both potential upsides and risks associated with investing in Litecoins pre-halving period so make sure you do your due diligence before committing any capital into this asset class!