Litecoin (LTC) Prepares for a Rally as it Breaks Above a Bullish Pattern

Litecoin’s [LTC] price action has remained dormant for the last week as it didn’t move much. However, the trend can change as LTC broke above a bullish pattern.

Litecoin [LTC] price remained largely dormant over the last week, not clocking in much movement. However, the trend could be set to change since LTC did break out of a bullish pattern.

If the coin does retest the pattern, then investors could be looking at explosive growth over the next few weeks.

LTC gearing up for a rally

CoinMarketCap’s data showed that LTC’s price moved only marginally over the last seven days. At press time, Litecoin was trading at $84.48 with a market capitalization of over $6.3 billion, ranking it as the 20th largest crypto.

This sluggish price movement also had a negative effect on LTC’s market sentiment.

AMBCrypto’s analysis of Santiment’s data showed that LTC’s weighted sentiment remained within the negative zone. Its social volume also remained flat, except for a spike on 7 June.

Source: Santiment

But things could be turning volatile soon.

World Of Charts, a prominent crypto analyst, recently took to Twitter to highlight an interesting development.

As per the tweet, LTC’s price broke out of a bullish pennant pattern, which could allow the coin to touch $120 over the next few weeks.

LTC’s price entered the pattern in March and has been consolidating within it ever since.

The chances of an LTC bull rally are…

Since LTC did showcase a bullish breakout, AMBCrypto then analyzed the coin’s on-chain metrics to see how likely it is for LTC to turn explosive.

Our analysis showed that whale activity around the coin remained significantly high throughout the last week. Furthermore, its MVRV ratio also went up, which is bullish.

The MVRV ratio had a value of 14.79% at press time.

Source: Santiment

In addition to this, LTC’s fear and greed index was valued at 46% at press time, which showed that the market was in a neutral phase. Whenever the metric reaches this level, it indicates that things might get volatile soon.

We then turned to LTC’s daily chart to better understand what to expect. In order to touch $120, it is imperative for LTC to breach its resistance at $89.48.

A successful breakout past this level could allow LTC to reclaim $106 before it reaches $120. We found that its Chaikin Money Flow (CMF) registered a slight uptick from the neutral mark, hinting at the likelihood of LTC turning bullish.

Realistic or not, here’s LTC’s market cap in BTC terms

However, the remaining indicators suggested that it might take a bit longer for LTC to turn volatile.

For instance, its Money Flow Index (MFI) registered a downtick. Its Relative Strength Index (RSI) was also resting at the neutral mark.

Source: TradingView