• Litecoin has recently undergone a breakout trend, but is facing resistance around $113.
• Bitcoin also underwent a breakout trend and is now hovering around the $31,000 resistance level.
• Both cryptocurrencies will be undergoing halving events in the coming months and analysts predict a deep retracement and 70% drop for Litecoin before its halving event.
Litecoin’s Pre-Halving Rally
The prices of most tokens have been consolidating after a recent surge, with Bitcoin rising above $31,000. Meanwhile, Litecoin has experienced an iconic rally in the past few days and is presently struggling to go beyond the $113 resistance zone. Both proof-of-work blockchains will experience halving events soon and this could be why prices are seeing a pullback.
Both tokens are in the middle of a breakout trend despite not reaching their interim highs. If they had marked larger targets and dropped them it would have appeared as fake breakouts; however, their prices are still hovering around resistance levels which means that retracements may be imminent before they reach post-breakout retests.
Litecoin appears to have reached the upper boundary of its multi-year downtrend line which suggests that there may be an overextension before its pre-halving top occurs in the coming weeks followed by a deep retrace of approximately 70%. On the other hand, Bitcoin has dipped below $31,000 offering traders an opportunity to accumulate more coins at cheaper rates.
Commentary from Analysts
An analyst by the name Rekt Capital believes that both token prices have witnessed large rallies leading up to their respective halvings yet both seem to be slowing down near crucial resistances suggesting that these rallies may soon come to an end with a possible drop of 70% for Litecoin before it experiences its own halving event.
It can be concluded that both Litecoin and Bitcoin are currently undergoing breakouts which could result in either short or long term bullish trends depending on whether or not they manage to achieve their post-breakout retests or not. Analysts predict that there may be some volatility leading up to each token’s respective halving event as well as potentially significant drops afterward for Litecoin especially.