Litecoin is down by less than a percentage point in the early hours of today’s trading session. The drop comes a day after Litecoin had one of its largest drops since June 16, after it lost 10.40 per cent of its value.
Yesterday’s 10.4 per cent drop in the markets did not come as a surprise. Before the drop, Litecoin prices had traded along the $60 resistance level for four consecutive trading sessions without successfully breaking out of the resistance level to the upside.
During yesterday’s trading session, Litecoin price attempted the breakout for one last time, and at one point, it was above the resistance by 4 per cent. However, the trend was a seller’s market, which saw Litecoin’s price dropping by 13 per cent from the trading day’s price high and closing the markets with a price loss of 10.4 per cent.
Today, although we are in the early hours of the trading session, it looks like the bearish trend from yesterday will continue, with prices already down by less than a percentage point. The trend also looks to be gearing up for another aggressive push to the downside throughout the session.
Part of the reason I think the current bearish trend will continue even in the next few trading sessions is due to the current bear market of the cryptocurrency industry. For the past few weeks, the industry has struggled in the markets, which has seen the market capitalization slide below $1 trillion. Major cryptocurrencies such as Bitcoin and Ethereum have also been aggressively bearish, which has resulted in other altcoins such as Litecoin, which are positively correlated with them, getting dragged down.
Therefore, I expect Litecoin’s price to start trading below the $50 price level soon. There is a high likelihood we might see LTC prices falling as far back as below the $45 price level and possibly hitting the $41 support level. My analysis will only be invalidated by prices trading above the $60 price level again.
This post was last modified on Sep 07, 2022, 09:36 BST 09:36