The correlation between Litecoin and Bitcoin makes the Litecoin price prediction eerily similar to that of Bitcoin. There is a bearish pennant on the daily chart, which raises the potential of a steeper selloff in the days or weeks to come.
The extent of Litecoin’s price recovery periods is consistently getting smaller. Yesterday’s 10% surge did not get Litecoin back to last week’s price levels. The price rejection at the consolidation area of the bearish pennant tallies with expectations. Unless something significant happens to pull Bitcoin prices sharply higher, Litecoin prices may be in for some very long days ahead.
Technical Levels to Watch
The active daily candle has retraced from intraday highs, as the upper border of the triangle consolidation area that connects the tops of 21 May and 27 May holds firm. The price pattern is gradually evolving into a bearish pennant. The Litecoin price prediction based on the expected resolution of this pattern is for the pattern to break down, allowing the price to target a measured move towards the 23 December low at 95.25. This move would have to take out support levels at 160.72, 143.57, and 120.53, in that order.
However, if the price ends up breaking the upper border of the consolidation area at 192.49 (11/16 March, 4 April lows, and 31 May high), we could see a price recovery towards 220.37. This also negates the expected resolution of the bearish pennant and invalidates it. Additional resistance is also seen at 240.46.