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Litecoin Price Analysis LTC/USD: Downfall

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  • Litecoin has a bearish short-term and medium-term trading bias
  • The four-hour time frame shows that the LTC/USD pair is trading in a descending price channel
  • A sustained loss of the $47.00 level would be extremely bearish for Litecoin

Litecoin has erased its early month trading gains, leaving the cryptocurrency testing back towards the October monthly trading low, just below the $50.00 level.

The LTC/USD pair now trades down by over 25% from its monthly peak, and nearly 70% lower than its 2019 trading high around $160.

The strong bid-tone that was present during the summer months never fully returned to the LTC/USD pair, with recent price action suggesting that buying demand was waning above the $60.00 level.

SIMETRI Research

The technicals for Litecoin are clearly showing that a loss of the $47.00 level could cause a quick drop towards the $40.00 level. In fact, this level has particular importance on both the four-hour and daily time frames.

The four-hour time frame shows that Litecoin is trading within a descending price channel, with the $40.00 level the bottom of the price channel. A break under the October monthly level would confirm an upcoming technical test of the $40.00 level.

Looking at the daily time frame, a large wedge pattern has formed, which hints that a major technical breakout could be on the horizon over the medium-term.

Interestingly, the bottom of the large wedge pattern is located at the $40.00 level, making it an important technical area that LTC/USD buyers must defend to avoid capitulation towards the $25.00 level.

Overall, traders have few reasons to be bullish towards the LTC/USD pair at present, especially if the October trading low around $47 is broken.

According to the latest sentiment data from TheTIE.io, the short-term sentiment towards Litecoin is bearish, at 32.50 %, while the overall long-term sentiment towards the cryptocurrency is neutral, at 54.00%.

 

LTC H4 Chart November 22 by TradingView
LTC/USD H4 Chart by TradingView


Upside Potential

The four-hour time frame shows that key technical resistance is located at the $57.00 and $60.00 levels. Buyers ideally need to rally price above the $69.00 level to start creating bullish higher highs.

Key technical resistance above the current monthly trading high is found at the $80.00 and $90.00 levels.

 

LTC Daily Chart November 22 by TradingView
LTC/USD Daily Chart by TradingView


Downside Potential

The four-hour time frame is showing that the LTC/USD pair has medium-term technical support around the $47.00 and $45.00 levels.

Critical long-term technical support for the LTC/USD pair is located at the $40.00 and $25.00 levels.


Summary

Traders have few reasons to be bullish towards the LTC/USD pair now, with the cryptocurrency technically bearish on all fronts.

Overall, the LTC/USD pair must bounce from the $40.00 level or face capitulation towards the $25.00 area.

 

Check out our coin guide for an introduction to Litecoin.

We also wrote a DARE (Digital Asset Report and Evaluation) for the project, analyzing the future prospects of the Bitcoin competitor.

Litecoin Chart

 

DISCLOSURE

Authors at Crypto Briefing are invested in cryptocurrencies. The author of this post may be invested in digital assets mentioned here.

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