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October 1, 2023
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LTC Price Analysis: Litecoin Dump Begins, Falls 20% In A Week; Time To Exit?

The post LTC Price Analysis: Litecoin Dump Begins, Falls 20% In A Week; Time To Exit? appeared first on Coinpedia Fintech News

With the buyer’s confidence going haywire, the altcoins are struggling to find a solid footing to hold the downfall. With top coins like Bitcoin(BTC) and Ethereum(ETH) down by 7.52% and 6.02%, Litecoin faces intense bearish pressure. 

Trending lower within a channel to complete a negative cycle in a rising channel LTC price action creates a snowball effect. Coinciding with the market-wide correction, the negative cycle breaks below the support trendline. 

Giving rise to a death cross, the Litecoin price is down by 22% in the last week with a spike in trading volume. Marking the daily chart in red, the LTC price action displays three consecutive bearish candles bringing the market value to $60. 

Currently, the lower price rejection from $60 helps the LTC price to trade at $65 and forms a Doji candle. This comes as a relaxation period as investors prepare for the next buy or dump move. 

Coming to the technical indicators, the Stochastic RSI and DMI are extremely bearish. The Stochastic RSI shows the K and D lines in the oversold zone. Meanwhile, the DMI shows a sharp increase in ADX or trend momentum with the VI lines far apart with a huge bearish gap. 

Will Litecoin Price Crash To $50?

With the $70 breakdown, mentioned as a worst-case scenario in our previous LTC price analysis, the downtrend is getting severe. If the buyers fail to hold off the crash rally at $60, the following support levels are at $50 and $40, accounting for an 18% to 33% fall.

On the flip side, a consolidation move above $60 will delay the downfall and help the momentum indicators rest for a bit. 

Optimistically, chances for a reversal are thin but a closing above $70 can push the trend upwards. 

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