Litecoin Price Recovery Stalls as a Double-Top Forms

Summary:
• Litecoin price remained under pressure as fear engulfs the cryptocurrency industry. LTC was trading at $59.66 on Monday

Litecoin price remained under pressure as fear engulfs the cryptocurrency industry. LTC was trading at $59.66, which was about 8% below the highest level last week and is at the lowest level since November 17. This price is still about 25% above the lowest level this month while the crypto fear and index has pulled back.

Is it safe to buy the LTC coin?

Litecoin price has pulled back sharply in the past few days as concerns about contagion in the cryptocurrencies continues. This price action is similar to that of other popular cryptocurrencies like Ethereum and Ripple. 

Litecoin has struggled as the coin’s hashrate has bounced back in the past few days. After plunging to 517 TH/s last Friday, it has jumped back to 537 TH/s. Hashrate is an important gauge in the crypto industry because it measures the health and security of a network. It measures the computational power of the ecosystem. Mining difficulty has also risen.

Still, the biggest concern hindering Litecoin’s price is the ongoing worries about FTX. Investors anticipate that contagion risks could hit the broad crypto industry. For example, shares of Grayscale Bitcoin Trust are trading at a 40% discount to the value of its holdings. The company has also claimed that it owes over $3 billion to its 50 largest creditors.

Meanwhile, Bitcoin’s fear and greed index has collapsed to 21, which means that investors are extremely fearful. In most periods, digital coins tend to underperform when the index is in the fear region.

Litecoin price prediction

The four-hour chart shows that the LTC price has been struggling in the past few days. This decline is important because it happened after the coin retested the important resistance level at $64.16, the highest point on November 11. It has also dropped below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved below 50.

Litecoin has formed a double-top pattern. Therefore, there is a likelihood it will continue falling as sellers target the key resistance level at $55. A move above the resistance level at $62 will invalidate the bearish view.