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Litecoin (LTC) Sees Breakout: Analyzing the Chances of a 27% Increase

2 mins
Updated by Ryan Boltman
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In Brief

  • Litecoin's price is breaking out of the descending triangle reversal pattern, hinting at a potential 27% increase.
  • The chances of a rise are likely given the altcoin's risk-reward ratio is pretty good and investors seem confident.
  • Furthermore, the participation of LTC investors in the chain is rising for the first time since November 2023.
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Litecoin (LTC) price could be on the verge of noting considerable gains in the coming days following its breakout from the bullish descending triangle reversal pattern.

LTC investors support a rally, given that the cryptocurrency is far below its potential and is a good bet.

Is Litecoin a Good Catch?

Litecoin’s price tends to respond to investors’ actions, and by its looks, it could see a rise soon. This is because the LTC holders have exhibited a surge in their participation on the network.

The addresses conducting transactions have increased by 22.66% from 353,000 to 433,000 in the last three weeks. This rise in active addresses is the first noted in nearly six months, as the last time this happened was back in November 2023.

Litecoin Active Addresses.
Litecoin Active Addresses. Source: Santiment

However, their increase in activity is in response to the potential showcased by the asset. 

The Reserve risk indicator shows that Litecoin is in a good state to accumulate. This indicator assesses Bitcoin investors’ risk and confidence levels by measuring the ratio of Bitcoin’s price to the HODL Bank. 

Generally, an indicator in the green area indicates confidence is high and the asset is an attractive bet. This is because the risk-reward ratio is rather high, incentivizing investors to accumulate. 

Read More: How To Buy Litecoin (LTC) and Everything You Need To Know

Litecoin Reserve Risk.
Litecoin Reserve Risk. Source: Glassnode

Even though LTC is below the green area at the moment, the sentiment remains the same.

LTC Price Prediction: Rally Ahead?

Litecoin’s price can be seen breaking out of a descending triangle reversal pattern. A descending triangle reversal pattern is a bullish chart formation characterized by a horizontal support line and a descending trendline.

It suggests a potential trend reversal from bearish to bullish when the price breaks above the trend line. This is the case with LTC as well, trading at $81 at the time of writing. 

Based on the aforementioned conditions, the altcoin could note a potential 27% rally to reach the target of $102 set by the pattern. However, it would need to flip the resistance at $86 into support first.

Read More: Litecoin (LTC) Price Prediction 2024/2025/2030

Litecoin Price Analysis.
Litecoin Price Analysis. Source: TradingView

If this breach fails, LTC could fail to test the support at $79, losing, invalidating the pattern and the bullish thesis. Consequently, Litecoin’s price could drop to $76 and lower.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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