Litecoin (LTC) Faces a Critical Test: Will Bears Drag It to $40?
- Litecoin is trading in the $50.60 range.
- LTC’s daily trading volume stands at $313M.
The 3.85% plunge in the market has triggered the crypto token value to sharply decline. Along with this, the broader sentiment is lingering in extreme fear. A steady move on the upside could block further losses. Meanwhile, Litecoin (LTC) has registered a 4.53% loss in value over the last 24 hours.
In the early hours, the LTC price was traded at a high range of $53.04. With the bearish turn, it has slipped to a low of $50.36. At press time, Litecoin traded at around $50.60, with its market cap settled at $3.89 billion. In addition, the daily trading volume of the asset has spiked to $313.63 million.
LTC price (Source: CMC)
The 4-hour trading pattern of LTC has the potential to push the price down to the support level at around $43.51. Once the bears gain more traction, the death cross could unfold and send the price down toward $36.15 or even lower. On the flip side, if a reversal occurs, the bulls would take control of the Litecoin market. Also, the price might rise to the nearest $57.64 resistance. Assuming this range holds firm, the price could climb above $64.29, with the golden cross formation.
Bears Tighten Their Grip on Litecoin’s Price Structure
Litecoin’s Moving Average Convergence Divergence and signal lines are below the zero line, in the bearish zone. With this placement, the bearish sentiment continues to dominate. Unless the MACD begins to move toward the zero line, the asset may continue to face consolidation.
Moreover, the Chaikin Money Flow (CMF) indicator of LTC at -0.27 implies strong capital outflows from the asset, reflecting heavy selling pressure. There is a weak buying interest and reduced accumulation, likely confirming that the broader market mood remains bearish.
The ongoing sentiment within the Litecoin market is bearish, as the daily Relative Strength Index (RSI) is found at 31.89. It may approach the oversold territory, and the price is nearing the levels where sellers may lose strength. A drop below 30 confirms stronger bearish control.
Significantly, the Bull Bear Power (BBP) reading of -2.43 hints that the bears are strongly dominating the market. The sellers are pushing the price below, and it may continue to face selling pressure in the near term. If it moves toward zero, it would signal an early recovery phase.
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