Litecoin price has fallen below the major daily support level of approximately $82.4. According to on-chain data, 432,070 addresses sold LTC between $81.64 and $83.88. The bearish theory will be invalidated if the daily candlestick closes above $82.40.
The price outlook for Litecoin (LTC) has turned bearish after falling below a key support level, with on-chain data suggesting holders are losing interest and confidence in the token.
Litecoin price is likely to recover
Litecoin price closed down 4% on Friday, plummeting 11% intraday and falling below the key daily support level at $82.40. In this scenario, LTC could experience a so-called dead cat bounce, a short-term price increase within an overall downtrend, reaching a price imbalance between $80.36 and $83.08.
If the market outlook does not improve, LTC could face resistance at the following levels:
The midpoint of the imbalance, $81.76, coincides with the 61.8% Fibonacci retracement level from the June 6 swing high of $85.88 to the June 7 swing low of $75.09. The daily resistance level is $82.40.
Failure to break out above $81.76 could trigger a 9% drop and retest the daily support level at $75.09. The Relative Strength Index (RSI) on the 4-hour chart is hovering around 36.08, just above the oversold threshold of 30, indicating the possibility of a temporary recovery before the downtrend resumes. It shows.
LTC/USDT 4 hour chart
According to IntoTheBlock’s In/Out of the Money Map (IOMAP), approximately 432,070 addresses yielded 6.67 million LTC tokens at an average price of $82.76, with purchases made between $81.64 and $83.88. If prices rise to this region, these investors may choose to sell to breakeven on their positions.
From a technical analysis perspective, the $81.76 resistance level is in line with the IOMAP findings, marking this zone as an important reversal point to watch.
LTC IOMAP Chart
IntoTheBlock’s on-chain data also shows a bearish outlook for Litecoin. The number of zero balance addresses jumped from 195,860 on June 4 to 675,450 on June 8, coinciding with a 6% price crash. This suggests that holders are losing interest and trust in Litecoin, perhaps out of fear of further losses, and capital is flowing out of LTC.
LTC zero balance address chart
Despite the bearish outlook suggested by technical analysis and on-chain data, if Litecoin price closes above $82.40 in the daily time frame, the bearish theory will be invalidated by creating higher lows It will be. This could cause a 4% increase and push LTC prices to the June 6th high of $85.88.
