Litecoin was trying to move up on its chart. However, the bears remained strong. While the coin did show some recovery, its technical outlook indicated further decline. Bitcoin has also fallen below the $20,000 mark.
Broader market weakness can be attributed to Litecoin’s downward price movement. The closest support line to LTC was $45, and LTC’s price traded very close at the support level. The latest drop in price over the past 4 days have invalidated LTC’s weekly gains.
The coin’s value has continued to fall since it lost $50 of its support. LTC’s value has continued to plummet because of the existence of buyers.
LTC may push higher and surpass the $50 mark with the slightest amount of demand. Global cryptocurrency market capitalization today stands at $924 billion. Positive 0.2%Changes in the past 24 hours
Four-hour Chart: Litecoin Analysis
LTC trades at $48 in the fourth hour chart. At $47 and $45, the nearest support lines were found. The technical outlook pointed towards LTC’s possibility of dipping further on the chart. LTC could trade below $47 at some point.
50 is the expected overhead resistance. LTC may move to $50 if the demand is higher. To invalidate the bearish thesis, LTC must trade at least $51 for an extended period. The trading volume of Litecoin in the most recent session fell, which suggests a decline in purchasing power.
Technical Analysis
Altcoin has seen a decline in buyers over the past few weeks. LTC’s $50 support was lost and buyers quit the market. The Relative Strength Index, which is a measure of the strength and powerlessness of the selling pressure, was lower than the 50% line.
RSI however displayed a small uptick signalling at LTC’s struggle to recover on chart. The 20-SMA line was lower than the price of Litecoin, which indicated that the sellers had been driving price momentum. This is a sign of bearish pressure. LTC could show signs of upmovement shortly after its chart shows further decline.
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A four-hour chart showed mixed technical outlooks for LTC. Chaikin money flow is used to determine capital inflows or outflows. CMF was well below the half-line, which points to very low capital outflows.
Awesome Oscillator monitors price momentum and the direction of coins. AO displayed the green signal bars below its half-line. These signal bars, which were green in color, indicated that there was a chance of price action changing. LTC must reverse the trend of market weakness in order to be successful.
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