Litecoin price rose 1% to $63.7 during U.S. trading on Tuesday, despite a rebound across crypto markets. The bearish reversals in most major altcoins indicate a lack of momentum and suggest buyers will temporarily decline and stabilize from last week’s rally. However, the rebound in LTC prices may be related to the sudden capitulation of short holders, which is often interpreted as a signal of a potential recovery.
Litecoin pricing challenges multi-year support
Litecoin price has been steadily correcting over the past five months under the influence of a downtrend line. The bearish reversal saw assets fall 45% from $112.8 to $63, and market capitalization plummeted to $4.77 billion.
The indirect trendline and 50-day exponential moving average provide dynamic resistance for LTC buyers, indicating that sell sentiment on the upside remains intact. If the bearish momentum continues, Litecoin price could drop by 20% and retest the support trend line of the triangle pattern that has been active since December 2018.
The possibility of a retest to lower the trend line will be very important for LTC holders. If the bears sustain below this level, a multi-year run will end in the bears’ favor. This support breach will result in the predicted starting Litecoin price target being set at $40 and then $25.
LTC/USDT -1 day chart
LTC Coin emphasizes stability as small investors withdraw
LTC prices have been flat for nearly two weeks, swinging around the $65 level. Despite the consolidation, the market witnessed a sudden liquidation event, with 45.2K Litecoin wallets holding between 0.1 and 1 LTC reduced, suggesting small investors (small fish) are exiting their positions. I’m doing it.
However, the exit of small or speculative traders is often reflected as a shakeout, which attracts long-term investors. This transition is usually healthy as it promotes a steady recovery trend for the asset.
LTC Supply Distribution | Santiment
Therefore, if the bottom support trend line holds, Litecoin price will cause a major reversal. A bullish reversal and subsequent breakout of the overhead trend line would indicate new bullish momentum and send us heading towards the $80 high.
Frequently Asked Questions (FAQ)
Litecoin could fall by 20% as it approaches the multi-year support trendline of the triangle pattern. If this support level is broken, it could trigger a significant decline
Litecoin’s bearish trend is being driven by resistance from the downtrend line and the 50-day exponential moving average.
The lower trendline of the $50 triangle pattern is important to defend for LTC buyers.
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Sahil Mahadik
Sahil is a dedicated full-time trader with over 3 years of experience in financial markets. He has a strong grasp of technical analysis and keeps a close eye on daily price movements of top assets and indices. Drawn by his fascination with financial products, Sahil enthusiastically embraced the emerging field of cryptocurrencies and continues to explore opportunities driven by his passion for trading.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
