$LPT Price Analysis: Potential Bearish Scenario Ahead
After successfully breaking above the resistance area, LPT (Livepeer) experienced a significant surge, growing over 50% and forming an ascending channel on the 4-hour time frame. However, the future direction of LPT hinges on its performance during the crucial retesting phase.
Bearish Scenario:
If LPT fails to bounce during this retest and the support of the ascending channel proves weak, it could signal a bearish turn of events. In this case, the ascending channel pattern would fail, and LPT might resume its downward movement. The potential target for this decline is the demand area around $15 to $16.75.
Historical Context:
Historically, LPT has demonstrated strong bounces when reaching the demand area. This pattern suggests that, while a bearish scenario is possible, the demand zone could again act as a significant support level, potentially leading to a price rebound.
Key Takeaways:
Current Trend: LPT is in an ascending channel after a significant price surge.
Bearish Signal: Failure to bounce during the retest phase and weak channel support could lead to a downward trend.
Target Area: Potential decline towards the $15-$16.75 demand zone.
Historical Behavior: Strong bounces have been observed in this demand area, indicating potential support and a possible price rebound.
Traders should monitor LPT's price action closely, especially during the retesting phase, to make informed decisions based on these potential scenarios.
