The price action of Litecoin has not yet confirmed the control of the bears over the market in the medium/long term. If the increasingly low lows remain, further selling of up to USD 68 might occur soon.
The lack of determination among those participating in the cryptocurrency market generates pessimistic scenarios. However, many users continue to defend the most significant support levels. The price action of Litecoin (LTC) is an example of that widespread tide of little decision that tilts the odds slightly towards the bears.
LTC is trading at around USD 110.58 and has accumulated a 0.1% gain in the last 24 hours. Its daily trading volume is above USD 456.18 million, and its market capitalization is about USD 7.72 billion. It occupies 21st place in the cryptocurrency ranking, according to CoinGecko.
Monthly Technical Analysis Allows Understanding the LTC Price Action
The monthly LTC/USD chart shows an evident bearish trend since mid-2021 due to a correction after a significant bullish rally.
The supply zone left by the all-time reached in 2017 hampered the price of Litecoin. Since then, the price created a descending triangle, a chart figure indicating a possible reversal in the trend.
The price could be making a simple correction before resuming the previous trend. However, the lack of determination among buyers puts that scenario at risk.
During the 2021 rally, the price of LTC crossed the 8-month EMA and 18-month SMA to the upside. However, it now breaks through those indicators to the downside. The value of LTC is more likely to lose the immediate support level around USD 117. If that happened, the ground would be clear for USD 68.
At the moment, medium/long-term holders can trust Litecoin, as its price action has not confirmed the control of the bears over the market. The value has not yet fully broken through the descending triangle, suggesting it may be near the bottom of the drop.
Key Short-Term Levels in the Price of LTC
The weekly chart allows making a more accurate forecast of the LTC price action.
During that time frame, sellers control the short-/medium-term trend despite showing weakness.
Traders defend the price of Litecoin above the 200-period SMA, which could be a good sign.
However, the trend of the price of LTC is undoubtedly bearish. As long as the increasingly low lows remain intact, there will more likely be selling soon. If the value lost the support at USD 110, sales of up to probably USD 68 would occur.
Before thinking of buying, the bulls must first break through the immediate resistance at USD 127. However, if the price recovers the USD 160 level, investors can trust in a possible resumption of the long-term upward trend.
The decrease in prices in the cryptocurrency market has affected altcoins like Litecoin. Besides, events like the war between Russia and Ukraine and the growing inflation worldwide have made them drop.
By Alexander Salazar
