Litecoin [ltc] Drops Beneath Range Lows, Could $50 Be Next

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the opinion of the author.

Litecoin was on a downtrend main into Might, and in mid-Might, it shaped a variety between the $60 and $74 ranges. At press time, the worth appeared set to drop additional after closing a session beneath $60.

USDT dominance stood at 6%, on the time of writing, and has oscillated between the 5.84% and 6.5% ranges over the previous three weeks. If this metric does certainly advance, it could be an indication that capital was fleeing from the crypto-assets and into the stablecoin USDT, which is a sign of promoting stress.

LTC- 12-Hour Chart

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

Supply: LTC/USDT on TradingView

The development has been downward for LTC since late November, and in April and Might, the worth was unable to defend each the $100 area in addition to the $80 space. Each of those zones have been flipped from demand to provide zones, and the worth continued to sink decrease to the $60 mark.

Prior to now three weeks, the worth appeared to type a variety between $60 and $74 (white), with the midpoint at $67 which has served as each help and resistance in the identical time interval.

The day before today of buying and selling noticed LTC slip beneath the vary lows and beneath the $60.4 mark. The Fibonacci extension ranges (pale yellow) confirmed potential 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 are able to see that, other than the Fibonacci extension ranges, the $50 stage has additionally been a robust increased timeframe help stage.

A retest of the $60 mark might materialize within the subsequent day or two, and an entry to a brief place will be thought of. A stop-loss will be set simply above $62 for aggressive merchants. Because the $63.5 space has acted as resistance previously couple of days, a extra lenient stop-loss will be set close to the $64 mark as nicely. The $57, $51, and $50 ranges can be utilized to take revenue.

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

Supply: LTC/USDT on TradingView

The H4 RSI was beneath the impartial 50 line and fell beneath the 35 mark previously few hours of buying and selling. This growth indicated robust bearish momentum behind LTC. The Superior Oscillator additionally shaped crimson bars on its histogram, to indicate strengthening downward stress.

On the OBV is marked a horizontal stage (inexperienced) which has been defended, for probably the most half, all through Might. Nevertheless, the earlier two days of buying and selling noticed OBV slowly sink beneath the highlighted stage.

Conclusion

The falling OBV and the downward RSI indicated that promoting stress was intense behind Litecoin. The upper timeframe value motion confirmed the vary lows being damaged, including additional confluence to encourage shorting the asset. An entry might be taken close to the $60 stage. The $57, $51, and $50 ranges can be utilized to take revenue, with a conservative stop-loss at $63.9.

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