- Summary:
- The Litecoin price is about to form a death cross. This implies that the coin will likely see more weakness going forward
The Litecoin price has been under pressure and the daily chart points to further weakness. The LTC is trading at $130, which is about 68% below the highest point this year. This has seen its market capitalization drop to more than $8.7 billion making it the 13th biggest cryptocurrency in the world.
Litecoin is a relatively old cryptocurrency project that was built to be an alternative to Bitcoin. The coin works in a relatively similar way to Bitcoin but it is relatively cheaper to use. It is also more efficient since the network does not have substantial congestion.
Litecoin is usually seen as a viable alternative to Bitcoin in the investment community because of its relatively cheaper price. For one, with just $1,000, you can buy several Litecoins. With the same amount, you can only buy a fractional part of Bitcoin. Therefore, recently, the Litecoin price has struggled as investors remain concerned about interest rates and regulations.
Litecoin price prediction
The daily chart shows that the LTC price has been in a deep downward trend. Indeed, it dropped to the lowest level since December 24 this week. A closer look shows that the coin is trading substantially below the 200-day and 50-day exponential moving averages. The two averages are also about to have a crossover that is also known as a death cross. In most cases, this is usually a sign that bears are in control.
Therefore, in my view, we can’t rule out further declines in the near term. Deeper declines will be validated if the price manages to move below this week’s low of $105. The bearish view will be invalidated if the price moves above $150.
LTC price chart
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