Litecoin (LTC) has rebounded by 130% to nearly $100 after bottoming out near $40.50 in June 2022. The primary reasons include broadly improving risk-on sentiment and bliss around Litecoin’s upcoming cutting in half in August 2023.

However, technicals suggest that LTC may eliminate the majority of these gains in the coming months.LTC cost paints

giant bear flag Litecoin stands to pare its gains primarily due to a giant bear flag on the weekly chart.A “bear flag “is a bearish

extension pattern that occurs when the cost combines inside a rising, parallel channel after undergoing a strong drop. It resolves after the cost breaks below its lower trendline with an increase in trading volumes.Litecoin has actually been painting a comparable pattern since early June 2022. Previously, the LTC/USD set had actually gone through a 70% rate correction from$130 to$ 40.50. Therefore, from the technical point of view, it would resume its drop course if its rate breaks listed below the lower trendline. LTC/USD weekly price chart including bear flag breakdown setup. Source: TradingView As a rule, a bear flag breakdown relocation prompts the rate to fall by as much as the previous sag’s length. Applying the exact same setup to Litecoin brings its bear flag disadvantage target to almost$30.50, or 65%lower than the existing LTC price.Litecoin price “head phony”? As stated previously, Litecoin’s price healing has actually mostly happened in line with similar relocations throughout the risk-on market due to cooling inflation. For example, the Nasdaq-100 stock market index has actually increased around 15.50%between October 2022 and January 2023. Likewise, Bitcoin (BTC)has rallied by more than 50%since its November 2022’s low of around $15,500 . The weekly correlation coefficient in between Litecoin and the Nasdaq-100 has actually been primarily favorable at 0.35 on Jan. 27. Likewise, the connection in between Litecoin and Bitcoin is now around 0.21. Litecoin’s weekly correlation coefficient with Nasdaq-100 and Bitcoin. Source: TradingView But Mark Haefele, the chief investment officer at UBS Global Wealth Management– along withother numerous other experts– has noted that the continuous risk-on rally might be a”head phony.”In simple words, the continuous Litecoin rally, under the impact of its risk-on equivalents, could be short-lived. Independent market analyst Capo of Crypto also agrees, noting:”The way the upward movement is occurring, the way [higher-timeframe] resistances are being checked … it plainly looks controlled, no real need. As soon as once again, the most significant bull trap I’ve ever seen.”Bullish scenario for Litecoin Nevertheless, not everybody is bearish on risk assets such as Litecoin. Popular market expert Rekt Capital sees Litecoin rallying towards$160 in the coming weeks, pointing out a month-to-month chart setup as shown listed below. LTC/USD monthly rate chart. Source: TradingView Notably, the chart reveals LTC’s rate undergoing a strong rebound relocation after evaluating a

multiyear ascending trendline resistance inside the $40 to$50 location, which could qualify it for a more uptrend toward the$ 120–$160 range.These upside targets have actually previously functioned as assistances and resistances. Breaking this essential resistance could therefore invalidate the bear flag setup, which happens 54%of all time, according to research by veteran investor Tom Bulkowski.This article does not contain financial investment guidance or recommendations. Every investment and trading move includes threat, and readers must perform their own research study when deciding.