Renowned crypto analyst Kaleo, with a significant following of 593,200 Twitter users, has expressed concerns about Litecoin’s (LTC) recent price surge leading up to its halving event.
Kaleo draws parallels between the current market behavior and the second half of 2021, when Litecoin experienced a substantial rally of over 187% followed by a prolonged bear market.
Highlighting the significance of recent price movements, Kaleo notes that Litecoin failed to maintain its upward momentum above the $110 mark, thereby respecting its bear market trendline. This rejection at a critical resistance level raises concerns for the analyst, as it closely resembles a retracement pattern witnessed towards the end of 2021, which ultimately resulted in new lows.
Kaleo further examines the historical performance of Litecoin prior to its 2019 halving event. The analyst emphasizes that the previous halving marked the onset of a downtrend for LTC. With the upcoming halving scheduled around August 2nd, Kaleo cautions against assuming a bullish outcome merely based on the hype surrounding the event. The trader cites the sell-the-news phenomenon observed after the last halving on August 5th, 2019, leading to a significant price decline.
Additionally, Kaleo closely monitors the performance of the Litecoin versus Bitcoin pair (LTC/BTC). The trader identifies bearish signals on the lower timeframe, particularly as LTC/BTC breached diagonal support, indicating a potential downturn for Litecoin relative to Bitcoin.
Returning to the LTC/USD chart, Kaleo anticipates a short-lived rally for Litecoin before the altcoin resumes its downward trajectory. While LTC currently clings to support against the US dollar, the analyst warns against relying on anything more than a temporary rebound, likening it to a “dead cat bounce.”
In summary, Kaleo’s insights urge caution regarding Litecoin’s pre-halving rally, hinting at the possibility that the cryptocurrency may have already reached its peak. The analyst’s analysis includes historical patterns, bearish market indicators, and previous halving events to support these concerns.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.