The Litecoin price heading to $100 seems inevitable. However, if LTC slips below $100, there is a real possibility that $50.00 follows.
Litecoin (LTC) is lower by $7.03 (-6.24%) at $106.06, as the crypto market adjusts lower, following Bitcoin’s drop below $30,000.
With the obvious exception of stable coins, every cryptocurrency in the top 50 is lower this morning. With several suffering double-digit declines in the last 24 hours. Not until 51st ranked Dash (+5.75%) does the screen flip from red to green.
This is typical of the market in general. A rising tide is said to lift all ships, and never more so than crypto. If Bitcoin and Ethereum are higher, generally speaking, the broader market follows. Therefore, it’s logical the reverse would also be true.
BTC almost tagged its major support at $28,700 overnight. And in my opinion, a market rarely gets close to key support and resistance levels without at least testing their validity. On that basis, I expect BTC to trade below $29,000 sometime soon.
However, if Bitcoin accelerates through $28,700 and gains downside traction, this will likely drag LTC towards the psychological $100 threshold. And if that fails, the next technical target is lower. Like, way lower. As in 50% lower.
Litecoin is below all three major moving averages. Moreover, the negative sentiment is clear because the 50 DMA at $146.25 is beneath the 100 and 200 averages at $204.66 and $192.65, respectively.
Additionally, a robust descending trend line from late May, at $130.00, provides a considerable price barrier on the upside.
Reinforcing the resistance above the market is the former horizontal support at $116.00.
Obviously, $100.00 is the first and considerable level of price support. Although, the daily chart offers nothing to back it up until $50.00.
On a positive note, the Relative Strength Index (RSI) has wandered into oversold territory, and its 25.29 reading tells us the price is looking overstretched in the short term.
Not to mention, if LTC holds $100.00 and reverses higher, it will leave an encouraging double-bottom formation on the chart. This, in turn, could instigate short-covering, forcing the Litecoin price above the descending trend line.
For now, traders should be patient. LTC’s fate hangs in the balance until Bitcoin commits to either a reversal or a continuation lower.
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