Litecoin price has eased after plummeting earlier in the day. The trend observed in the crypto is comparable to that of the leading cryptocurrency – Bitcoin, and other altcoins.
After hitting its highest level since mid-May at $52,985.13, BTC dropped to 51,033.70. Notably, there exists a correlation between Bitcoin price and altcoins.
However, even with the significant price swing seen in the crypto market, extreme greed remains the key emotion at play. The crypto fear and greed index is currently at 79 as was the previous session. From this perspective, Litecoin price will likely continue with its rallying in the near term.
LTC has eased after extending it losses from Monday’s intraday high of 231.98. Despite the plunge, the altcoin remains above the support level of 200. The previously evasive zone has been a crucial support level for Litecoin price since Friday.
At the time of writing, the crypto was down by 5.58% at 207.31. Since the beginning of the week, it has declined by about 11.24%. On a two-hour chart, it is trading below the 25 and 50-day exponential moving averages.
In the near term, Litecoin price will likely remain above the psychological level of 200. I expect it to ease at its current support level of around 205 before rebounding further. As it bounces back from its plunge, it may experience resistance along the 25-day EMA at 217.37. Notably, a move below 200 will invalidate this thesis.