Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
Bearishness seems to have crept into the crypto-market over the last 7 days. With Bitcoin trading around the $53k-mark at press time, many of the market’s altcoins are continuing to see their prices drop on the charts. Litecoin is no exception, with LTC dropping by over 15 percent over the past week.
At the time of writing, LTC was trading at $174.3 and registered a 24-hour trading volume of over $3.7 billion. In the last 24 hours alone, the coin recorded losses of up to 10 percent and in the coming week, LTC may see a further drop in price before a recovery can materialize.
Litecoin 1-day chart
Source: LTC/USD, TradingView
Litecoin’s trading price had flipped a strong support level to resistance, at the time of writing. The support at $207 was breached, a level that over the past two weeks turned out to be a formidable range that resisted the coin’s attempts at moving upwards. At the time of writing, LTC was banking on a support around the $162-range and if this support is breached in the coming 48 hours, LTC is likely to head towards a below-$140 valuation, following which it might stabilize around $137.
In such a scenario, traders with short positions stand to benefit and can take profit around this range.
Rationale
Litecoin’s technical indicators further illustrated the bearishness in the LTC market. The MACD indicator underwent a bearish crossover in the recent past and at the time of writing, there seemed to be no indicators that a reversal was likely in the coming days. This could push LTC’s price further down over the coming week.
The RSI indicator was also heading towards the oversold zone and projected that the LTC market, at the time of writing, was dominated by the market’s sellers.
Important levels to watch out for
Resistance: $209.4, $243.7
Support: $162.7, $137.9
Entry: $169.1
Take Profit: $141.5
Stop Loss: $207.3
Risk/Reward: 0.72
Conclusion
Litecoin, at press time, was registering a hike in bearish pressure and the coming week may not necessarily see a trend reversal. This will be especially true if the press time support is flipped to resistance. In such a scenario, LTC is likely to head below $140 before the coin’s price stabilizes.