Litecoin Price Prediction: LTC Sits On Top Of Critical Level
Daily Litecoin LTC Technical Analysis
- LTC has broken below the middle Bollinger Band in the daily chart.
- The number of new addresses entering the protocol has dropped down.
Litecoin bears have taken control of the market for four straight days as the price has dropped below the $140 psychological level. Upon looking at the daily chart, we can guess just how much farther the Litecoin price will fall.
The $138 Support is Key
Over the last four days, the Litecoin price has dropped from $152.50 to $139.30, crashing below the middle Bollinger band in the process. Due to LTC’s bearish price action over the last ten days, the relative strength index (RSI) in the daily chart has dropped from the overpriced zone to the neutral zone.
Image: LTC/USD daily chart
When we look at IntoTheBlock’s “IOMAP,” we can see just how strong and critical this $138 support is. Previously at this level, 56,000 addresses had purchased around 3.3 million LTC tokens. If the price breaks below this, LTC will tumble to the 50-day SMA ($118).
While the IOMAP shows moderate-to-strong resistance barriers on the upside, the 4-hour chart shows us two resistance levels at the 20-bar and 50-bar SMAs (both around $145). With the MACD showing sustained bearish momentum, it is implausible that these levels will break any time soon.
Image: LTC/USD 4-hour chart
Looking at the daily active addresses chart, we can see that the overall number has dropped from 88,200 to 65,650, which shows that the overall network is weakening.
Litecoin Price Is Expected To Reach These Levels
Users should be very grateful for the $138 support wall since it looks like that’s the only thing that’s holding the price up. If this level breaks, then LTC will likely drop to the 50-day SMA ($118), which coincides with the lower Bollinger Band.