Litecoin Price Prediction: LTC Lacks Healthy Support Levels On The Downside
Daily Litecoin LTC Technical Analysis
- Litecoin has dropped sharply by $46 over the last four days.
- Technicals show that the overall market sentiment is bearish.
Over the last four days, Litecoin has dropped from $178 to $132, losing $46 of its overall valuation. However, some technicals suggest that a further price drop is in the cards. Let’s take a closer look with technical analysis.
LTC Drops Below 20-day SMA
During the last four days, the price has dropped below the 20-day SMA and is settling above the $130 psychological level. This Monday, the price reached intraday lows of $110 before it managed to bounce up from the 50-day SMA. Along with that, the digital silver also managed to reverse the parabolic SAR from bullish to bearish, which shows that the overall market sentiment is negative.
Image: LTC/USD daily chart
Plus, the moving average convergence/divergence (MACD) shows increasing bearish momentum. All these indicate that the overall price is going to drop some more. As per IntoTheBlock’s IOMAP, the $130 support barrier is not that strong.
A break below this barrier will take LTC down to the 50-day SMA ($110). There is another negative sign that gives further credence to our bearish outlook. The graph below has been taken from IntoTheBlock, and it shows the number of new addresses entering the protocol.
The number of new addresses rose from 56,000 on January 1 to 88,220 on January 11. However, it has dipped to 75,210 over the last 24 hours. This shows that the network is becoming steadily weak.
Key Price Levels To Watch For LTC
If the $130 support barrier breaks, the price will drop to the 50-day SMA ($110). On the other hand, the buyers could take control and attempt to break past the $140 resistance wall and reach the 20-day SMA ($145).