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- 1 The Litecoin crypto (LTC) is headed for a steep drop.
- 2 The LTC crypto chart shows weakness and weak potential as it drops below major EMAs.
Litecoin (LTC) is a cryptocurrency that was developed to enable fast, secure and low-cost payments by utilizing the remarkable and unique features of blockchain technology.
Like Bitcoin and several various other cryptocurrencies, Litecoin utilizes the PoW consensus algorithm to guarantee transactions as they are confirmed quickly and without errors.
The combined power of the Litecoin mining network prevents double-spends and a range of other attacks, while ensuring the network has 100% uptime.
The cryptocurrency is also often operated as a trial ground for latest new technologies before they are involved and applied on the Bitcoin network.
Litecoin was the first to implement Segregated Witness (SegWit), which “separates” a transaction’s digital signature data (the witness) outside of it to use limited block space better, even though the technology was first suggested for Bitcoin.
LTC also executed the Lightning Network, a layer-two (L-2) scaling solution, before Bitcoin. Many used Litecoin’s Lightning Network to test the network, which depends on user-generated payment channels, in a real economic environment.
Litecoin Price Could Shed More Weight
Litecoin price is a range, stretching from $56 to $115 in the past 365 days, as it crashed 51% between July 3, 2023, and September 11, 2023. Since then, LTC has moved with low momentum, has hardly recovered, and was mostly trading below the $85 level.
After LTC broke down from the wedge formation, Litecoin price slumped 12% and is currently trading at $64.78.
The LTC crypto chart shows a sharp decline as the price fell from a wedge of around $72. Now, the Litecoin crypto is headed for a steep drop.
Therefore, if Litecoin crypto’s price is rejected at the range low of $56, it will invalidate the bullish scenario. In such a case, LTC could continue heading lower up to the weak low and could even reach up to the $50 psychological level.
On the other hand, if Litecoin price recovers above the range low of $56 and produces a higher high above the last key swing high, it would confirm the emergence of bulls. In such a case, LTC is likely to kickstart a rally to the daily resistance level of $68.
Moreover, the LTC crypto asset is showing bearish weakness and falling potential as it drops below major EMA’s. Litecoin is showing bearish momentum as MACD is showing a bearish cross with a broadening width of the histogram and the RSI is falling steadily, indicating that the LTC asset is not gaining steam and can continue to slump lower.
Summary
The LTC crypto has displayed a sign of a major decline as the price fell from a wedge of around $72 on the chart. Therefore, if Litecoin crypto’s price is rejected at the range low of $56, the bullish scenario is unlikely. In such a case, LTC could continue heading lower up to the weak low and can even reach up to the $50 psychological level.
Technical Levels
Support Levels: $56
Resistance Levels: $68
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
