Litecoin has been dragged through the mud recently after suffering a 13.55% price decline over the past week. This brought its price to $63.93 as it broke beneath a long-term rising support line. Litecoin has now dropped by a substantial 33% in the past 30 days alone as investors wonder how long this could possibly continue.
LTC remains the fifth-largest cryptocurrency by market value with a market cap of $4.05 billion.
Looking at the LTC/USD 1-day chart:
- Since our previous Litecoin analysis, the Litecoin price has continued to fall drastically and broke below the year-long rising support trend line which we had expected would hold the market. Litecoin continued to fall before finding support at approximately $63 where the decline has briefly stalled.
- From above: If the bulls can defend $63 and push higher, immediate resistance lies at $67.23 and $70. Higher resistance is located at $74, $77.45, $80, and $85. The resistance at $80 is bolstered by the 200-day EMA.
- From below: If the price breaks beneath $63, initial support lies at $60.91 (the downside 1.414 Fib extension) and $60. Below $60, support is expected at $56.60 and $51.84 (the downside 1.618 Fib extension).
- The trading volume has increased slightly during the latest round of selling.
- The RSI is currently well below 50. For a sign of recovery, look for the RSI to rise back toward 50, as this will show that the selling momentum is fading.
Looking at the LTC/BTC 1-day chart:
- Trading against Bitcoin, LTC fell beneath the 2018 low of 0.0068 BTC and is currently trading at 0.00666 BTC. This latest price drop has actually created a fresh 20-month low not seen since December 2017.
- From above: The nearest levels of resistance are 0.00688 BTC and 0.0070 BTC. Above this, resistance lies at 0.0074 BTC, 0.0080 BTC, 0.008244 BTC, and 0.0090 BTC.
- From below: Initial support is located at 0.0065 BTC and then at 0.006380 BTC (the red downside 1.272 Fib extension). Further support is expected at 0.0062 BTC and 0.0059997 BTC.
- This market’s trading volume spiked during the previous sell-offs.
- The RSI is not quite as oversold here, which unfortunately suggests that there is some space for the market to head even lower.
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.