Litecoin (LTC) Flashes Bullish Flag Pattern, Is a Breakout to $90 Next?

Litecoin (LTC) just climbed over 10% in a day, hitting $86 before a slight pullback. This sudden move has formed a bullish flag pattern, a technical signal that often appears before further gains.

Litecoin (LTC) is showing signs of a potential breakout after a strong run-up, forming a bullish flag pattern on the charts. The digital currency could be en route to $90, presenting an opportunity for short-term traders.

Litecoin Pushes Toward $90 as Bulls Form Flag Pattern

Litecoin has encountered resistance at the $87-$90 price point, a level that could be pivotal for the cryptocurrency in the short term. A breach of this barrier might open the door for LTC to rally further toward the $100 mark, according to technical analysis.

This analysis follows Litecoin's impressive 10% surge in a single day, during which it reached a high of $86 before a slight pullback. This rapid move has created the bullish flag pattern, a technical signal that is frequently observed during periods of strong price increases and indicates that the asset is likely to continue rising after a brief pause.

The Relative Strength Index (RSI) is still below overbought levels, and trading volume has increased, both of which suggest that there is potential for further gains in the short term. However, it's important to note that anything in the crypto market can change quickly.

"If LTC can close above the $87-$90 resistance, then we can expect to see a continuation of the rally towards the $100 psychological level," an analyst at cryptocurrency analytics firm Benzinga noted on Monday. "This move will also be aided by the RSI, which is still below overbought levels."

Litecoin: What to Know Today

The cryptocurrency is known for its role in the early days of Bitcoin and its strong community support. It's also one of the most widely traded digital currencies on major exchanges.

As of Monday morning, LTC was trading hands at around $84. It has lost over 60% of its value since the start of the year and is currently trading at a discount of about 76% from its all-time high of $413, set in May 2021.

Dogecoin: A Different Story

Meanwhile, Dogecoin (DOGE) has hit its lowest level since October 2024 amid a broader crypto market downturn. The meme coin is trading at around $0.13, its lowest point since October.

In the past 48 hours, large holders, or "whales," have sold 1.32 billion DOGE, valued at over $190 million, at prices ranging from $0.13 to $0.14. These whales now control nearly 47% of the circulating supply.

Such significant sell-offs can increase the available supply, potentially leading to further price declines if demand doesn't rise to compensate.

Recently, 21Shares launched a Dogecoin ETP on the SIX Swiss Exchange, but this development hasn't had a major impact on the cryptocurrency's price. This ETP allows European investors to gain exposure to Dogecoin through their preferred brokerage accounts.

This situation presents a dilemma for investors: the potential for further declines due to increased supply and market uncertainty, or the possibility of a rebound if demand picks up. As always, carry out your own research and assess any investment opportunities carefully.