Litecoin Technical Analysis: 50-day SMA Protects LTC’s Downside

Daily Litecoin LTC Price Analysis

Last Updated July 23rd 2021
2 Min Read
  • Litecoin price market sentiment is presently negative.
    • The MACD shows increasing bearish market momentum.

    Since May 10, the Litecoin price crashed from $388 to $242 – losing almost $150 in its overall valuation. During this crash, LTC managed to break below several key psychological levels such as the 20-day and 50-day SMAs.

     

    Litecoin Price Negative Momentum On The Rise

    The MACD shows increasing bearish market momentum. Plus, the Bollinger Band has started expanding to indicate that a further drop could be in the cards. However, breaking below the Bollinger Band will make LTC underpriced, which could usher in a new bullish rally.

    Image : LTC/USD daily

    LTC/USD daily chart 052421

    Looking at the IOMAP, the Litecoin price has a moderate-to-strong support wall at $150. Previously, at this level, ~45,000 addresses had purchased <700,000 LTC tokens. It shouldn’t take a lot of selling pressure to successfully break below this level.

    Image: IntoTheBlock

    LTC/USD volume chart 052421

    Litecoin Price On-Chain Analytics

    The MVRV Z-Score is used to assess when Litecoin is over/undervalued relative to its "fair value". When market value is significantly higher than realized value, it has historically indicated a market top (red zone), while the opposite has indicated market bottoms (green zone). Technically, MVRV Z-Score is defined as the ratio between the difference of market cap and realized cap, and the standard deviation of market cap, i.e. (market cap – realized cap) / std(market cap). LTC MVRV Z-Score just reached a 5-month low of 0.421.

    LTC/USD glassnode chart 052421

    Litecoin Price Is Expected To Reach These Levels

    The Litecoin price will likely break towards the $155 support wall. If this line doesn’t hold strong, then LTC will definitely tumble towards the $100 psychological level.

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