The past two consecutive trading sessions had been strongly bearish for the Litecoin price, resulting in a 10 per cent drop. However, today’s trading session is showing signs of a strong push to the upside and is already up by almost a percentage point.
Unfortunately, today’s Litecoin recovery looks short-lived when looked at from a broader perspective, where the general trend of the cryptocurrency is still aggressively bearish. For instance, in July, Litecoin is down by 9 per cent. Moreover, the price drop in July also looks to be an extension of the long-term trend that resulted in a 21 per cent drop in June and a 28 per cent drop in May.
Much of this drop has been partly due to the current general trend of the cryptocurrency industry, which has been going down since the year started. Therefore, despite having strong fundamentals, that would typically push the crypto upwards, Litecoin prices have followed the market trend and continued to drop.
What happens in the next few trading sessions depends on the general trend of the cryptocurrency industry. This is because Litecoin, one of the largest altcoins in the markets, is positively correlated with other cryptos such as Bitcoin, which are currently pushing downwards aggressively.
Therefore, looking at the daily chart below, my Litecoin price prediction expects the prices to continue falling. This is despite today’s trading session looking aggressively bullish. In the next few trading sessions, there is a high likelihood that we will see the prices push downwards and possibly hit the $40 support level.
If the cryptocurrency industry continues to be aggressively bearish, there is a very high likelihood that the prices will also trade below the $40 support level. However, my analysis will be invalidated if prices move past the $55 price level, which happens to be the price high of the past three trading sessions. At that point, the bullish trend will have been established.
This post was last modified on Jul 12, 2022, 09:22 BST 09:22