Litecoin price has been under extreme pressure over the past few weeks, hovering around its lowest levels of the year due to poor on-chain metrics and depressed markets. LTC price fell 5.55% in the past week and 33% in the past three months. The asset has also tumbled 12% so far this year, but remains 22% higher than it was last year. Litecoin’s total market capitalization is $4.5 billion, ranking 15th.Day After Polkadot.
What’s happening with LTC?
Litecoin price has been in a strong downward trend since the successful third halving event was completed in early August. Since then, the digital asset has fallen off the radar of cryptocurrency investors due to the price drop it experienced after huge gains from investors who invested in Litecoin, followed by a surge in price due to market expectations of the halving event.
According to on-chain data, the number of daily transactions for Litecoin has been steadily decreasing since the August halving. According to BitInfoCharts, the number of daily LTC transactions decreased from more than 584,000 in May to 104,000 in October. This suggests a lack of interest among investors and thus reduced risk appetite.
Litecoin, Bitcoin’s silver to gold, has always been highly correlated with Bitcoin, making it vulnerable to the volatility of the leading cryptocurrency. In addition to Bitcoin’s correlation with broader market cues, altcoins are vulnerable to price declines due to the inactivity of their whale addresses. Even though whale addresses control about 11% of total circulating supply, whale buying and selling activity fuels the market.
Nonetheless, data from Coinmarketcap shows that the asset’s daily trading volume has improved. As of this writing, total trading volume for LTC has increased by approximately 14% over the past 24 hours, suggesting a possible price reversal.
Litecoin price technical analysis
According to the daily chart, Litecoin price has been trading in a narrow range between $61 and $65 over the past few days. The altcoin price has fallen more than 45% from its highest level since $114 in July of this year. Litecoin failed to recover above the critical level of $72.65 following the halving.
LTC remains below the 50-day and 200-day exponential moving averages and the 50-day and 100-day simple moving averages. The Relative Strength Index has fallen below the signal line, suggesting selling pressure is increasing. The Moving Average Convergence Divergence (MACD) indicator is sending a ‘strong sell’ signal.
Therefore, Litecoin price is likely to continue falling in the coming sessions, eyeing the immediate and important support level of $60. A drop below this level could push the price as low as $56, the lowest this year. On the other hand, if it exceeds the 50-day EMA of $65.90, a price reversal could begin and subsequently rise to $72.65 and $84.
LTC price chart