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- 1 Litecoin (LTC) is in a downtrend and is reflecting a breakdown.
- 2 Sellers persisted in adding short positions aggressively.
The Litecoin (LTC) triggered a breakdown and breached its critical 200-day EMA support zone in the last session. A bearish crossover on the daily charts highlights that LTC will lose further gains in the upcoming sessions.
Going forward, the Litecoin (LTC) price is hovering near its most crucial upward trendline support. If sellers succeed in breaching this trendline, a free fall could be triggered, which would redirect the LTC price to $50 soon.
At press time, the Litecoin (LTC) price traded at $78.47 with an intraday drop of 2.78%, reflecting bearishness on the charts. It has a monthly and yearly return ratio of -1.90% and 9.90% respectively.
The pair of LTC/BTC is at 0.00126 BTC, and the market cap is $5.78 Billion. Analysts are bearish and suggest that the Litecoin (LTC) price may extend the drop and will continue to underperform.
Can Ongoing Correction Extend Ahead? Price Outlook
On the daily chart, LTC price reflected a bearish crossover and slipped below the 200-day EMA mark. LTC is at a make-or-break region of $75. A sharp fall could be seen ahead if it breaks.
Source: TradingView
Over the past few weeks, the Litecoin price showed a gigantic distribution from the top, eroding over 25% of gains last month. Likewise, buyers looked trapped and had unwinded their long positions. This week, selling volume bounced over 23.89% to $372.25 Million.
The Relative Strength Index (RSI) curve stayed in the oversold region and showed a negative crossover, highlighting the selloff on the charts.
Futures Open Interest Data Outlook
The futures data of Litecoin (LTC) implies long unwinding data, and the open interest dragged over 5.28% to $328.74 Million in the last 24 hrs.
Source: CoinGlass
Per the GIOM indicator, only 36.60% of in-the-money holders at the current price level are in profit, whereas more than 62% of the money and out-of-the-money holders are looking to secure their gains.
This fear among the investors might trigger further selling pressure, leading Litecoin (LTC) toward $60, followed by $50 soon.
Source: IntoTheBlock
Per the Fibonacci retracement levels, the Litecoin price slipped below the 38.3% zone and reached the 23.6% region. The immediate support levels for LTC are $70 and $67, whereas the key upside hurdle is around $80, followed by $85.
Conclusion
LTC price chart shows follow-on selling pressure and is riding on the bearish track, demonstrating strong underperformance. The upward trendline near the $75 mark is the last hope for the bulls.
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice.