NOIDA (CoinChapter.com)— Litecoin is a token that is keeping its traders on their toes. The crypto asset, often labeled as the “silver” to Bitcoin’s “gold,” is giving mixed signals to traders, with bullish on-chain indicators and market sentiment combined with bearish Litecoin price technicals.
LTC price action in 2024 has been a positive one, though nothing to write home about, with the token sitting on 21% YTD gains.
However, the market crash on April 13 really hurt the token, forcing LTC prices to pare all its gains since Feb. 2024 before bulls recovered some of the lost ground.
Litecoin recently marked 12.5 years of continuous operation, emphasizing its network stability. Created in 2011 by Charlie Lee as an alternative to Bitcoin, Litecoin has remained functional without significant downtime, showcasing the reliability of its technology and the dedication of its development team.
Litecoin Price Forms Bearish Setup
The Litecoin token has formed a bearish technical pattern called the ‘Rising Wedge.‘
The pattern forms when an asset’s price consolidates between upward-sloping support and converging resistance lines resembling a wedge. Declining trading volumes often accompany a breakdown below the pattern.
The price target of the pattern is equal to the height of the back of the wedge. If LTC price breaks below the bearish pattern, the token might fall to the theoretical price target near $44.8, a drop of over 49% from current levels.
Traders Remain Bullish On Litecoin
Retail traders remained bullish on the Litecoin token, as the number of wallets with more than 1,000 LTC tokens is rising.
According to on-chain data provider Messari, the number of shrimp wallets rose to levels last seen in February earlier this year. The rise in the number of retail trader wallets suggests a growing interest in the token in the retail market.
Apart from on-chain indicators refuting chances of LTC confirming the pattern, traders remained optimistic of Litecoin’s price action in the near future.
Andrew Griffiths, an independent crypto trader and analyst, claimed that the market largely ignored Litecoin and its fundamentals. Griffiths predicted that traders would likely notice LTC once the price of Bitcoin grows beyond their reach.
Moreover, Bitcoin’s growth could help Litecoin as well, as traders could re-invest their profits into altcoins like Litecoin to diversify their portfolios. Additionally, another crypto trader highlighted that Grayscale has been adding LTC tokens to its coffers, with its Litecoin token holdings reaching a new record high.
The growing adoption would certainly help Litecoin price avoid the bearish setup.
