The price of Litecoin has halved in less than three months. It is risky to buy a dip even if a small head and shoulders pattern has formed.

Litecoin's price has halved in less than three months, despite a small head-and-shoulders pattern, but buying the dip is risky.

The US dollar recorded one of its biggest rallies of the summer. For example, it won against the Euro for eleven consecutive weeks – the first time!

It wasn't just the euro that strengthened the dollar. In fact, it was a broad dollar strength, squeezing everything higher.

That means cryptocurrencies too.

Some cryptocurrencies have fared better than others. For example, Bitcoin is still holding highs heading into 2023, pushing through months of horizontal consolidation.

However, some other coins did not fare so well. Litecoin (LTC/USD) is one of them as its price has halved during the summer months. It was trading at $115 in July, falling to $60 in less than two months.

Such volatility is not uncommon in the cryptocurrency space. But the rate of decline (or the rate of dollar strength) is so fast that it takes a lot of nerves and courage to buy such a depression.

Litecoin chart on TradingView

LTC/USD is forming a small inverse head and shoulders pattern.

The head and shoulders pattern shows an inversion. When it occurs during a bearish trend, it indicates a potential bullish reversal.

It pierced the $60 level before the head of the pattern bounced. The pattern is enough to comply with the rules, but is it enough to reverse such a strong depression trend that is seen in the summer months?

In general, after nine months into the main conclusion of the business year, Litecoin could not hold more than $100. If he doesn't build up the energy to try again, the path of least resistance remains the downside.