Litecoin [LTC] drops beneath assortment lows, could $50 be future


Disclaimer: The information and facts offered does not represent economic, expenditure, investing, or other kinds of suggestions and is solely the belief of the author.

Litecoin was on a downtrend primary into May perhaps, and in mid-May possibly, it formed a variety concerning the $60 and $74 concentrations. At press time, the price tag appeared set to drop even further after closing a session beneath $60.

USDT dominance stood at 6%, at the time of creating, and has oscillated between the 5.84% and 6.5% concentrations around the past 3 months. If this metric does without a doubt advance, it would be a indicator that cash was fleeing from the crypto-property and into the stablecoin USDT, which is an indication of selling stress.

LTC- 12-Hour Chart

Litecoin drops beneath range lows, could $50 be next?

Source: LTC/USDT on TradingView

The pattern has been downward for LTC given that late November, and in April and Could, the price tag was not able to defend each the $100 location as effectively as the $80 area. Equally of these zones have been flipped from demand from customers to offer zones, and the price tag ongoing to sink decreased to the $60 mark.

In the past 3 weeks, the cost appeared to variety a variety among $60 and $74 (white), with the midpoint at $67 which has served as each help and resistance in the very same time time period.

The prior working day of investing observed LTC slip beneath the vary lows and beneath the $60.4 mark. The Fibonacci extension concentrations (pale yellow) confirmed attainable southward targets to be at $57.1, $51.7, and $46.4.

LTC- 4-Hour Chart

Litecoin drops beneath range lows, could $50 be next?

Supply: LTC/USDT on TradingView

Zooming into the H4 chart, we can see that, aside from the Fibonacci extension ranges, the $50 stage has also been a strong larger timeframe assist level.

A retest of the $60 mark could materialize in the future day or two, and an entry to a limited position can be viewed as. A stop-reduction can be set just above $62 for intense traders. Given that the $63.5 spot has acted as resistance in the past couple of days, a additional lenient end-decline can be set close to the $64 mark as properly. The $57, $51, and $50 levels can be made use of to consider financial gain.

Litecoin drops beneath range lows, could $50 be next?

Source: LTC/USDT on TradingView

The H4 RSI was down below the neutral 50 line and fell beneath the 35 mark in the past couple hrs of investing. This development indicated robust bearish momentum driving LTC. The Amazing Oscillator also shaped pink bars on its histogram, to exhibit strengthening downward pressure.

On the OBV is marked a horizontal amount (green) which has been defended, for the most portion, through May. Nevertheless, the past two times of buying and selling observed OBV slowly sink down below the highlighted degree.

Conclusion

The falling OBV and the downward RSI indicated that providing pressure was powerful powering Litecoin. The larger timeframe price tag action confirmed the range lows remaining damaged, adding even further confluence to really encourage shorting the asset. An entry could be taken close to the $60 stage. The $57, $51, and $50 levels can be applied to get profit, with a conservative prevent-decline at $63.9.

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