Litecoin Bear Flag Could Cause 41% Drop to This Level, Analyst Explains

One analyst has explained that there is potentially a bearish flag forming for Litecoin, which, if confirmed, could cause LTC to drop to this level. Litecoin could be in danger of a deep decline due to this bearish flag. In a post on X, analyst Ali pointed out a possible bearish flag taking shape for Litecoin. A “bearish flag” is a pattern in technical analysis that, as the name implies, looks like a flag on a flagpole. The pattern takes shape when the asset sees a strong downward movement and is followed by a period of consolidation. This consolidation occurs towards a slight overall uptrend, meaning that its upper level is created by connecting higher highs, while the lower line joins higher lows. The pre-consolidation downtrend offsets the pole, while the channel looks like a flag. Inside the flag, the price is likely to feel resistance at the upper level, while support lies at the lower one. The bearish flag is popularly considered a continuation pattern, which means that the downtrend will continue after the pattern is formed. This continuation occurs when the price finally finishes its consolidation and breaks through the lower level of the flag. Like the bearish flag, there is also the “bullish flag,” which forms under opposite circumstances. In the case of this pattern, the price breaks out with a strong upward movement after the downward consolidation period ends. Now, here is the chart shared by the analyst that sheds light on a possible bearish flag formation in the 3-day price of Litecoin: The pattern that is currently forming in the 3-day price of the cryptocurrency | Source: @ali_charts on However, with the asset’s latest drop, the price seems to finally be breaking out of the pattern towards the bearish direction. This coin drop came as the rest of the cryptocurrency sector also reverberated with a drop. However, unlike many other assets, LTC never enjoyed any sharp rally to start the year, so the decline has been especially damaging for it. “After the recent drop, the outlook for Litecoin looks challenging,” Ali notes. “If the selling pressure continues, LTC could see a drop to $38, which could confirm a bearish flag formation.” Generally, the breakouts of any flag pattern are approximately the same length as the previous pole, which is why the analyst has selected this target. If the potential Litecoin drawdown plays out this way, then the asset would have seen a decline of over 41% from current price levels. LTC Price Litecoin had been floating above the $73 mark just before, but following this 11% drop, the coin has now dropped to just $65. It seems that the price of the coin has been moving sideways since the fall | Source: LTCUSD on TradingView Featured image by Kanchanara on, charts by Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC’s views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.

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