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Sohrab Khawas
Sohrab Khawas
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Sohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Aug 18, 2023 12:21 UTC
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LTC Price Analysis: Litecoin Dump Begins, Falls 20% In A Week; Time To Exit?
LTC price action shows a remarkable increase in selling pressure in the bearish market.
With the ongoing bloodbath, LTC prices fall by 20% to break below the rising channel pattern.
A drop below $60 will crash the LTC price to $50, an 18% drop.
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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