Litecoin price may be rejected by the 50-day EMA near $66 and may fall further. On-chain data paints a bearish picture as LTC’s long-to-short ratio is below 1. The bearish theory will be invalidated if the daily candlestick closes above $68.80.
Litecoin (LTC) price failed to close above the 50-day exponential moving average (EMA) near $66. At the time of writing, shares were trading 1% lower on Friday at $61.96. Furthermore, LTC’s long/short ratio is below 1, painting a bearish picture.
Litecoin price fails to close above the 50-EMA and tends to fall
Litecoin price is trading within a descending wedge pattern formed by trendlines connecting multiple highs and lows since mid-April. LTC is facing resistance near the 50-day EMA at $66.23, which is roughly in line with the upper trendline of the descending wedge pattern. As of Friday, it was trading at $61.96, just under 1%.
If the 50-day EMA near $66.23 holds as resistance, LTC could decline by 9% to retest the weekly support at $56.00.
The Relative Strength Index (RSI) and Awesome Oscillator (AO) on the daily chart are trading below the neutral levels of 50 and zero, respectively. Both indicators suggest weak momentum and an impending bearish trend.
LTC/USDT daily chart
According to data from Coinglass, LTC has a long-to-short ratio of 0.94. This ratio reflects bearish sentiment in the market, with numbers below 1 suggesting more traders are expecting the asset price to decline, reinforcing the bearish outlook for Litecoin.
LTC long/short ratio
Despite the bearish outlook indicated by technical analysis and on-chain data, if Litecoin price closes above $68.80 on a daily candlestick, it will record a higher high on the daily time frame; The bearish theory is invalidated. This could push Litecoin’s price up by 11%, potentially renewing its July 29 high of $76.78.
