Why LTC will be the first altcoin to rally in 2023

  • Litecoin price shows a clear double top formation around $70.86, denoting a potential for a pullback.
  • The $68.46 and $67.41 supports are inefficiencies formed on the four-hour and are accumulation levels for investors.
  • A daily candlestick close below $66.13 will create a lower low and invalidate the bullish thesis for LTC.

Litecoin (LTC) price is undergoing a pullback after its exponential run-up on November 22. This rally provided a clear reversal signal, which was followed by a deep retracement. Investors need to pay close attention to LTC as it attempts to get out of the rut and trigger another run-up.

Litecoin price and its positive outlook

Litecoin price rallied 79% in two weeks between November 9 and November 23, 2022. Eventually, the altcoin created a double top at $84.88, signaling the end of an uptrend and the beginning of a downtrend. As a result, LTC shed 28% and created a local bottom at $61.63, coinciding with the 62% retracement level. 

This base formation was followed by an 18% run-up, where LTC is currently forming a local top at $72. 

A minor retracement to $68.46 and $67.41 inefficiencies are the best levels to accumulate as Litecoin price gears for a pre-halving rally. Litecoin will undergo halving in 2023, which will drop the issuance of LTC from 12.5 to 6.25 per block. This event is scheduled to take place in August, but historically, the altcoin rallies roughly 200 days before the start of halving. Hence, investors can count on Litecoin price to trigger a massive rally going forward.

A bounce from $68.46 is likely to result in a 25% upswing that collects the liquidity resting above $84.88. 

While this move is a short-term upswing, long-term targets include $92, $95 and the $100 psychological level.

LTC/USDT 1-day chart

While things are looking up for Litecoin price, investors need to pay close attention to how bulls may react after a minor pullback. If buyers fail to step up and produce a run-up, it will denote weakness. In such a case, a daily candlestick close below $66.13 will create a lower low and shift the market structure favoring the bears. 

This development will invalidate the bullish thesis for LTC and potentially knock the altcoin lower to retest the $61.63 support level.