A 37% November price rally in Litecoin (LTC<\/a>) risks exhaustion as the \u201csilver cryptocurrency<\/a>\u201d\u00a0hints at forming a double top chart pattern.<\/p>\n The classic bearish reversal setup<\/a> appears when the price forms two consecutive peaks of almost the same height, with each upside move meeting with a strong correction toward a common support level, called the \u201cneckline.\u201d<\/p>\n Typically, the price breaks below the support and falls by as much as the maximum height between the double top\u2019s peak and neckline.<\/p>\n So it appears, Litecoin is halfway through forming a double top pattern, as shown in the chart below.<\/p>\n In detail, LTC\u2019s price<\/a> peaked out on Nov. 10 near $295.50 \u2014 the first top \u2014 before correcting lower toward the neckline support of around $249. That followed up with a rebound to $280 \u2014 the second top \u2014 eventually attracting profit-takers to cause a minor correction, which is still underway.<\/p>\n Litecoin would need to extend its selloff to retest the neckline. Meanwhile, breaking below the support level would activate the double top breakout setup, with the profit target sitting near $200.<\/p>\n Litecoin\u2019s bearish reversal pattern is emerging when inflation in the United States<\/a>\u00a0has surged to a three-decade high, prompting investors to seek a hedge across various financial instruments. <\/p>\n For instance, the most actively traded gold futures lately posted to its best week in six months, jumping 2.9% to\u00a0$1,868.50 per troy ounce, after the U.S. Labor Department reported<\/a> an increase in the consumer price index (CPI) by 6.2% year-over-year. That marked the fifth-straight month of inflation above 5%.<\/p>\n Many investors and\/or traders turned to Bitcoin<\/a>\u00a0(BTC<\/a>) after perceiving it as a safety net against rising inflation, noted Wilfred Daye, head of Securitize Capital \u2014 the asset-management arm of Securitize Inc \u2014 admitting that people have picked the cryptocurrency as a hedge despite its concerning price volatility.<\/p>\n \u201cWe don\u2019t have long enough history to assert Bitcoin is indeed an inflation hedge,\u201d Daye said<\/a>, adding:<\/p>\n \u201cI would argue that gold is a better inflation hedge still. But Bitcoin as an inflation hedge is a new sexy concept \u2014 people love new ideas.\u201d<\/p><\/blockquote>\n Bitcoin\u2019s growth has also helped altcoins<\/a>\u00a0rise in tandem thanks to its broader influence across the crypto market. Litecoin has been one of the beneficiaries of the rally, with its one-year correlation efficiency with Bitcoin standing at 0.71 above zero, per data collected from\u00a0Cryptowatch<\/a>.<\/p>\n As a result, concerns over persistently higher inflation have acted as a tailwind for Litecoin gains through Bitcoin. That could somewhat play spoilers for the bearish double top setup presented above \u2014 and validate a bullish pattern that has been active since last weekend.<\/p>\n Dubbed a bull pennant, the bullish continuation pattern appears when the price consolidates sideways inside a triangular structure after a strong rally upward. Traders confirm a bullish breakout when the price breaks above the triangle\u2019s upper trendline with strong volumes.<\/p>\n![\"\"](\"https:\/\/s3.cointelegraph.com\/uploads\/2021-11\/03d29c59-4922-41bd-aa8b-7c0e2020b596.png\" "\\"\\"")
The Bitcoin correlation<\/h2>\n
![](\"https:\/\/s3.cointelegraph.com\/uploads\/2021-11\/7a473100-b73e-4452-8757-eb24e4cc74a8.png\")
Litecoin \u201cbull pennant\u201d puts LTC target at $350<\/h2>\n
![\"\"](\"https:\/\/s3.cointelegraph.com\/uploads\/2021-11\/4fd76afc-bca7-4a26-936d-17b4177969da.png\" "\\"\\"")