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.
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