LTC Flashing Signs Of Late 2021 Correction, Says Crypto Analyst

A crypto strategist that a lot of people pay attention to thinks that Litecoin’s (LTC) pre-halving rise may have already peaked.

According to 593,200 of his Twitter followers under the pseudonym Kaleo, the peer-to-peer payments network may be mimicking its price activity from the second half of 2021, when it soared by over 187% before beginning a multi-month bear market.

The expert says that Litecoin recently stuck to its bear market trendline when LTC bulls couldn’t keep going above $110.

“Here’s why I flipped short on LTC:

1) Clear rejection at resistance. Retrace after the recent range breakout looks incredibly similar to what we saw at the end of 2021, which resulted in new lows.”

Kaleo is also looking at how LTC is doing before it splits in half in 2019. The trader said that the last split was the start of a downward trend for LTC.

“2) The halving is around the corner (date is ~August 2nd). As much as this has been hyped up as a bullish event, that isn’t necessarily what happened in the past. Let’s take a look at what happened after the last halving (8/5/19). It was a sell-the-news event. Price nuked.”

Kaleo is also keeping an eye on how the pair of Litecoin and Bitcoin (LTC/BTC) is doing. The trader says that LTC/BTC has moved below diagonal support and is now showing bearish signs on the lower timeframe.

“3) Low timeframe we’ve seen a clear breakdown of support in LTC vs. BTC.”

Going back to the LTC/USD chart, Kaleo thinks that Litecoin will have a short-lived rise before the altcoin goes back to falling.

“4) Zooming in, LTC is currently hanging on to support vs USD, but I wouldn’t count on anything more than a dead cat bounce here.”

Litecoin is worth $96.91 at the time of this writing.