LTC/USD has traded below July 2021 lows and is actually challenging support levels from December 2020 as February 2022 is ready to begin.
As of this writing, LTC/USD is trading near the 105.000 level and has continued to suffer from a long bearish track. In early November of 2021, Litecoin touched momentarily a high of nearly 300.000 USD. However, in May of 2021 Litecoin achieved its record high near 415.000 USD. The inability of LTC/USD to form a new record high in November may have been a telltale sign that all is not well with speculative sentiment for the cryptocurrency.
Early last week, when the broad cryptocurrency market got hit by additional downside volatility, LTC/USD traded below the 100.000 mark. While LTC/USD was able to reverse higher and briefly touch the 115.000 ratio on the 26th of January, the price slump in Litecoin has resumed and headwinds have been apparent. Since November of 2021, LTC/USD has essentially lost two-thirds of its value. And if May’s highs are taken into account, LTC/USD has lost three/fourths of its value since its record highs.
Speculators who remain optimistic about the future of Litecoin and believe it is oversold are now likely glancing at long-term charts which show LTC/USD is traversing brutal support levels. The value of LTC/USD is now in territory achieved before the winter/spring price rally of 2021, which produced many of the record highs in the broad cryptocurrency market. Unfortunately for LTC/USD it has also fallen through support levels of July 2021, and has penetrated technical support in a more volatile manner compared to many of its counterparts which are still trading above support levels from that timeframe.
Bullish speculators need to ask what the legitimate targets are for LTC/USD; perhaps seeking short term reversals higher may prove to be appealing. While LTC/USD trades near the 105.000 mark and above, the one hundred USD level may continue to prove worthwhile for short term bullish attitudes. LTC/USD traded at a high of nearly 156.000 on the 17th of January. This fact is also rather odd when compared to the broad cryptocurrency marketplace, because it does not exactly correlate. While it major competitors mostly saw highs in the first week of January, LTC/USD was able to display a high two weeks ago before stumbling badly.
LTC/USD has proven volatile the past couple of weeks and this will likely continue. Litecoin is an established ‘old guard’ cryptocurrency which used to have a market capitalization within the top five ranking. However, nowadays, LTC/USD has a market cap which only ranks as 22nd on the list of cryptocurrencies. Litecoin may still have days of glory ahead, but it is showing signs of a struggle. Bearish traders are paying attention.
While bullish traders may perceive LTC/USD as being oversold, there may be a crowd of speculators who remain skeptical about Litecoin. Incrementally, LTC/USD is within the grasp of a strong downward trend which may not be over quite yet.
Litecoin outlook for February
Speculative price range for LTC/USD is between 82.100 and 146.000.
If LTC/USD breaks the 100.000 mark and is able to sustain prices below this critical psychological juncture it could set the stage for further downside action. Speculators will need to look at long-term charts, but if studied, they can clearly see that LTC/USD traded near 100.000 in late December of 2020, but it was trading near 80.000 in the first week of December 2020. If the 100.000 level is proven vulnerable, traders should look at LTC/USD with intervals of five dollar stages perhaps as legitimate targets to sink further. If the 90.000 USD mark proves weak, LTC/USD could startle bearish traders with new lows quickly.
Value seekers who are bullish should be cautious with LTC/USD. What looks cheap may in fact turn out to be expensive if the trend downward continues. If LTC/USD is able to starting trading upwards, traders may want to use close resistance as targets and cash out winnings. Until LTC/USD is able to trade above the 125.000 ratio, any chants of a new bull rally may prove to be short lived and wrong. If Litecoin is able to establish upwards momentum and penetrates higher levels, it will likely be coming on the heels of a broad cryptocurrency market recovery during the month of February.
