Litecoin Price May Wipe Out Most Gains, 65% Crash Ahead?

• Litecoin price has rebounded from $40.50 to nearly $100 due to improving risk-on sentiment and euphoria around the upcoming halving.
• Technical analysis suggests that LTC may wipe out most of these gains in the coming months due to a giant bear flag on the weekly chart.
• If the bear flag breakdown occurs, Litecoin could drop to $30.50, amounting to a 65% crash.

The price of Litecoin (LTC) has been on a roller coaster ride over the past few months. After bottoming out near $40.50 in June 2022, LTC has seen a strong rebound of 130% to nearly $100. This surge was mainly due to an improving risk-on sentiment in the crypto markets and the anticipation of Litecoin’s upcoming halving in August 2023. However, technical analysis suggests that this rally could be a “head fake”, and that the price of LTC could drop significantly in the coming months.

To understand why this could be the case, it’s important to look at the weekly chart of LTC/USD. On this chart, we can see a giant bear flag pattern that has been forming since early June 2022. A bear flag is a bearish continuation pattern that happens when the price consolidates inside an ascending, parallel channel after undergoing a strong downtrend. It resolves after the price breaks below its lower trendline with a rise in trading volumes. Because Litecoin has already experienced a 70% price correction from $130 to $40.50, it stands to reason that if the bear flag breakdown occurs, it could drop to $30.50, amounting to a 65% crash.

Although the bear flag breakdown could mean a significant drop in the price of Litecoin, it’s important to note that this is only one possible scenario. There are a number of other factors that could influence the price of LTC, such as the overall market sentiment or the performance of other major cryptocurrencies. With that being said, it is important to keep an eye on the technicals and be aware of the possible risks before investing in any cryptocurrency.