Litecoin Price Analysis: Bears have full control of the market as LTC dips down
Daily Litecoin LTC Price Forecast
- The market momentum in the daily LTC/USD chart is overwhelmingly bearish.
- The 4-hour chart is currently trending in a downwards parallel channel.
Litecoin, the digital silver to Bitcoin’s digital gold, has been trending horizontally for the last two days following Tuesday’s bearish plunge. After double rejection at the $90 resistance line, the price has been on a downtrend and reached $77.
LTC bears tighten their hold
This Tuesday, the price plunged from $84 to $77, breaking below the 20-day SMA in the process. While the bulls and bears have cancelled each other over the last two days, the MACD suggests that the market momentum is overwhelmingly bearish. As such, it won’t be surprising to see the price drop below $70.
Image: LTC/USD daily chart
The 4-hour chart is currently trending in a downwards parallel channel. Breaking below the channel's lower bound ($71.25) will see the price gain enough momentum to break below the $70-level.
Image: LTC/USD 4-hour chart
Inside the channel, the two key levels are the 20-bar SMA ($79.60) on the upside and the $74.45 support on the downside. Currently, the price has bounced upwards from the support and is looking to negotiate with the 20-bar SMA. The RSI is trending in the neutral zone, favouring neither the bears nor the bulls.
Whales selling off their LTC tokens to create selling pressure
As per Santiment’s holder distribution chart, the number of addresses holding 100,000 to 1,000,000 tokens has dipped from 121 to 114 over the last month. While “7” may not seem like a large number on the surface, the fact that these addresses hold between $7.5 million to $75 million, it’s a pretty big deal. Releasing many tokens into the ecosystem during a sell-off harms the market sentiment and price action.
The long-term outlook is bullish?
Like we have pointed out previously, the long-term outlook for the price remains bullish, since the monthly price has charted the Adam and Eve pattern.
Image: LTC/USD monthly chart
This pattern indicates that the price can gain momentum and potentially aim for the $230 resistance barrier.
Litecoin price levels to watch
The daily chart has flashed several bearish signals, which is why we can assume that the price is going to dip soon. That’s why the 50-day SMA ($69.50) becomes a critical level that could potentially stem the downflow.
In the 4-hour time frame, the two most critical levels are the 20-bar SMA ($79.60) on the upside and the $74.45 support on the downside. These two levels are inside the parallel channel and will determine how LTC behaves in the shorter timeframe.