Technical Breakdown Exacerbates Litecoin Price Decline

10:16 pm
August 18, 2023

Summary: The price of Litecoin (LTC) has dropped by 14% in the past 24 hours and 23% over the past week. This decline is attributed to a technical breakdown and the overall market slump caused by Bitcoin’s sharp plunge. The recent halving of Litecoin’s block rewards has also contributed to the price decrease. To reverse the downward trend, bulls will need to defend the crucial support level at $60.

Why did Litecoin price go down today?

Litecoin’s decline in price is a result of the general market sell-off triggered by Bitcoin’s drop to the $25,000 range. The sell-off was sparked by rumors surrounding Elon Musk’s SpaceX and its Bitcoin holdings, leading to over $1 billion in liquidations within 24 hours. This downward pressure affected altcoins as well, causing Ethereum to plummet below $1,575 and XRP to reach the support area of $0.50. Consequently, Litecoin’s post-halving downturn deepened, leaving bulls vulnerable to further declines.

LTC price technical outlook

On the daily chart, Litecoin’s breakdown from its early July high of $114 has erased most of its pre-halving gains. The $100 level now serves as crucial horizontal resistance, while $60 is a key support level for bulls. The weekly chart also indicates a bearish outlook, with the RSI indicator signaling negative momentum. Furthermore, Litecoin has broken below the support line of an ascending parallel channel that has been in place since mid-May 2022. This breakdown suggests that bears have the upper hand in the market. If the price falls below $60, Litecoin could face new declines of 30% or more to $40. For a potential rebound, bulls will need to see price strength in the $80-$100 range.

FAQs

What caused the decline in Litecoin price?

The decline in Litecoin’s price can be attributed to a technical breakdown, the overall market slump triggered by Bitcoin’s plunge, and the recent block reward halving of Litecoin.

What is the crucial support level for Litecoin?

The crucial support level for Litecoin is currently at $60. If the price falls below this level, further declines of 30% or more to $40 are possible.

What is the resistance level for Litecoin?

The primary horizontal resistance level for Litecoin is $100.

What does the bearish outlook for Litecoin entail?

The bearish outlook for Litecoin is indicated by the RSI indicator signaling negative momentum and the breakdown below the support line of an ascending parallel channel.


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