Litecoin price shows the possibility of a massive capitulation event in the coming months.
Litecoin price is a heavy gamble
Litecoin price has been in a severe downtrend since May of 2021. A potential Elliot Wave count for the LTC price suggests the last 15x Bullrun between March of 2020 and May of 2021 was the 5th wave of a larger degree. This is quite a controversial call, as many analysts always expect wave 5 to surpass wave 3. This is not the case.
Litecoin price currently auctions at $56.85. The sharp decline after the $413 high in May was accompanied by extreme force. The Litecoin price lost 82% of its market value as the token fell in a free-fall fashion. When observing the decline, few factors suggest Litecoin is now within an extending wave 3 of a larger degree headed south.
For one, the Relative Strength Index breached the definitive line in the sand, which justifies calling the downtrend a corrective wave. The Volume profile shows a severe uptick in transactions greater than Corona Virus Induced 15x Bullrun. When combined, LTC, at best is too risky to jump in early. At worst, a ticking time bomb set to bring investors an explosion of pain.
For the chart heroes who disagree, it is understandable. No one wants to hear that their favorite coin is a Wall Street rugpull. This thesis also proposes that the wave count will be invalidated if the bulls can conquer the $75 region with a final daily settlement. Such a move could prompt a Bullrun targeting $144, which would result in a 150% increase in price while only missing the first 32% of the prospective bullrun.
