One widely-followed crypto strategist believes that Litecoin’s (LTC) pre-halving rally may already have peaked.
Pseudonymous analyst Kaleo tells his 593,200 Twitter followers that the peer-to-peer payment network could mirror its price action in the second half of 2021, when it surged more than 187% before launching a multi-month bear market.
According to the analyst, Litecoin recently respected the bear market trendline as the LTC bulls failed to sustain momentum above $110.
“This is why I went short LTC:
1) Clear rejection upon resistance. Retrace after the recent range breakout is incredibly similar to what we saw in late 2021, resulting in new lows.
Kaleo also looks at LTC’s performance ahead of the 2019 halving event. According to the trader, the previous halving marked the start of a downtrend for LTC.
“2) The halving is imminent (date is ~2 August). As much as this has been hyped as a bullish event, that’s not necessarily what happened in the past. Let’s see what happened after the last halving (8/5/19). It was a sell-the-news event. Price nuked.”
Kaleo also looks at the performance of the Litecoin vs Bitcoin (LTC/BTC) pair. The trader says that LTC/BTC is flashing bearish signals on the lower time frame after breaking below the diagonal support.
“3) Low time frame, we have seen a clear breakdown of support in LTC vs. BTC.”
Going back to the LTC/USD chart, Kaleo predicts a short-lived rally for Litecoin before the altcoin resumes its downtrend.
“4) Zooming in, LTC is currently holding on to support versus USD, but I wouldn’t count on this more than a dead cat bounce.”
At the time of writing, Litecoin is worth $96.91.
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