Litecoin Price Analysis: LTC Loses Nearly 20% In Its Valuation
Daily Litecoin LTC Price Forecast
- The number of new addresses in Litecoin has dipped over the last two days.
- LTC dropped from $177 to $145 in the previous two days.
Litecoin fell from $177 to $145, losing nearly 20% of its valuation over the last two days. By dropping below the $150 psychological level, the bears are currently negotiating with strong support at the 20-day SMA.
Price Falls Below Key Levels
Over the last two days, Litecoin has dipped below two resistance barriers at $170 and $155. Due to this bearish price movement, the LTC’s relative strength index (RSI) has fallen from 78 to 53, meaning that it is no longer overvalued.
Image: LTC/USD daily chart
Flipping the $155 line from resistance to support has been a significant win for the sellers. As per IntoTheBlock’s IOMAP, 48,000 addresses had previously purchased 3.85 million LTC at this level. On the downside, there is a severe lack of healthy support levels.
Looking at the 4-hour chart, two signs indicate that the current bearish trend is far from over. Firstly, the parabolic SAR has reversed from bullish to bearish, which suggests that the present trend is negative. Secondly, the MACD shows increasing bearish momentum.
Image: LTC/USD 4-hour chart
Along with this, it seems like the number of new addresses entering the LTC protocol has dipped considerably over the last two days, going down from 80,000 to 72,000. This is a sign of a weakening network. Regardless of LTC’s history, this is still a pretty impressive number, so it looks like the price may be going through a temporary correction.
Litecoin Price Levels To Watch
Looking at the 4-hour price chart, you can see that the price could potentially drop to the $130 support barrier and then the 20-bar SMA ($120). If the buyers mean to make a comeback, they will need to regain the $155 resistance level.