- LTC price tried to overturn the current downward trend.
- Crucial resistance prevented further upside momentum.
- Bears might drag LTC lower, exploring a value zone of $70.
Litecoin (LTC) appears to maintain its downtrends, threatening to record another 6-month low. Moreover, the alternative coin can plunge to surpass 2021 lows. The negative actions came as the global crypto market displayed bearish dominance since the year started.
LTC Price Might Lose 40%, Stretching its Bearish Tendency
Litecoin’s price function might soon attract many sidelined sellers to execute short positions. Buyers tried to overcome bears many times, aiming a decisive close beyond the daily Kijun-Sen and Tenkan-Sen. Success with that would catalyze a potential upward move for the token. However, bulls could not rescue the coin, and Litecoin experienced sell-offs.
If LTC closed beyond the Kijun-Sen and Tenkan-Sen, the following Ichimoku resistance zone does not appear until the Cloud’s bottom (Senkou Span A) around $165. Therefore, a move towards $165 will mean the first Ichimoku Cloud test since plunging beneath the level on 5 December 2021.
Buyers contemplated a move towards $165 that might push the RSI to the 70 mark. For now, the Relative Strength Index exhibits bear market situations, with overbought regions at 55, then 65. Meanwhile, the RSI required a higher movement from LTC price to explore the 70 levels. With that, the indicator would turn to bull market situations, and overbought regions would shift to 80, then 90.
For now, Litecoin’s expectations to complete its first significant upside reversal within six months may pause for future bullish actions.
As Litecoin keeps its price beneath the Ichimoku Cloud, the asset’s bias remains bearish, sellers controlling the marketplace. A close under $120 would annul any short-term bullish picture. Meanwhile, LTC does not have reliable support beneath $120, risking a capitulation action towards 100% FIB retracement. That is when support fails to emerge.
Litecoin’s weakness comes as the global crypto market shows downtimes. Bears appear dominant, diminishing efforts by bulls to record dependable surges. However, experts maintain a positive attitude about the asset class.
What are your thoughts about the crypto space so far this year? Comment below.
