Litecoin Price Prediction: LTC Bears In Control, Further Drops To Come?
Daily Litecoin LTC Technical Analysis
- Litecoin is on the verge of flashing a sell signal in the TD sequential indicator.
- The 20-bar SMA in the 4-hour chart was flipped from support to resistance.
Prior to this Friday, Litecoin had been riding a wave of positive sentiment. By charting a continuous flag-and-pole pattern, the digital silver was well on its way to $185 and, potentially, $200. However, following a bearish Friday, some indicators indicate that the price may go through a period of negative correction.
LTC Dips Below $170 and $160
Upon reaching the $175 psychological level, the price has gone through a correction. The price has dropped below the $170 and $160 zones during this correction and is currently trading for $159.
Image: LTC/USD daily chart
The daily chart is also on the verge of flashing the sell signal in the form of a green-nine candlestick in the TD sequential detector. The last time the price flashed this signal, LTC dropped from $115 to $102.
The four-hour chart also adds some credence to our bearish outlook. As you can see, the price has managed to flip the 20-bar SMA from support to resistance. This level has proven itself to be a strong support and resistance barrier in the past. So this could potentially trouble the bulls.
Image: LTC/USD 4-hour chart
IntoTheBlock’s IOMAP shows that the resistance barrier at $175 is pretty strong. On the downside, the price could fall to $155 before it encounters another healthy support wall. Previously at $155, 34,500 addresses had purchased 2.38 million LTC tokens.
It’s Not All Bad News
The current situation doesn’t look as bad when you consider that the number of new addresses entering LTC is currently at this highest point since October 2020.
Since January 1, the number of new addresses entering the protocol has risen from 56,000 to 79,000.
Key Price Levels To Watch For LTC
If our bearish thesis holds, then it will be interesting to see if the price manages to break below $155 or not. If that does happen, the next healthy support is all the way down at the 20-day SMA ($135).