Altcoins

Litecoin [LTC] drops beneath range lows, could $50 be next

Disclaimer: The info offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the opinion of the author.

Litecoin was on a downtrend main into May, and in mid-May, it fashioned a variety between the $60 and $74 ranges. At press time, the value appeared set to drop additional after closing a session beneath $60.

USDT dominance stood at 6%, on the time of writing, and has oscillated between the 5.84% and 6.5% ranges over the previous three weeks. If this metric does certainly advance, it might be an indication that capital was fleeing from the crypto-assets and into the stablecoin USDT, which is a sign of promoting stress.

LTC- 12-Hour Chart

Litecoin drops beneath range lows, could $50 be next?

Source: LTC/USDT on TradingView

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The development has been downward for LTC since late November, and in April and May, the value was unable to defend each the $100 area in addition to the $80 space. Both of those zones have been flipped from demand to provide zones, and the value continued to sink decrease to the $60 mark.

In the previous three weeks, the value appeared to kind a variety between $60 and $74 (white), with the midpoint at $67 which has served as each assist and resistance in the identical time interval.

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The earlier day of buying and selling noticed LTC slip beneath the vary lows and beneath the $60.4 mark. The Fibonacci extension ranges (pale yellow) confirmed doable southward targets to be at $57.1, $51.7, and $46.4.

LTC- 4-Hour Chart

Litecoin drops beneath range lows, could $50 be next?

Source: LTC/USDT on TradingView

Zooming into the H4 chart, we will see that, other than the Fibonacci extension ranges, the $50 stage has additionally been a robust increased timeframe assist stage.

A retest of the $60 mark may materialize within the subsequent day or two, and an entry to a brief place may be thought-about. A stop-loss may be set simply above $62 for aggressive merchants. Since the $63.5 space has acted as resistance previously couple of days, a extra lenient stop-loss may be set close to the $64 mark as effectively. The $57, $51, and $50 ranges can be utilized to take revenue.

Litecoin drops beneath range lows, could $50 be next?

Source: LTC/USDT on TradingView

The H4 RSI was beneath the impartial 50 line and fell beneath the 35 mark previously few hours of buying and selling. This growth indicated sturdy bearish momentum behind LTC. The Awesome Oscillator additionally fashioned pink bars on its histogram, to point out strengthening downward stress.

On the OBV is marked a horizontal stage (inexperienced) which has been defended, for essentially the most half, all through May. However, the earlier two days of buying and selling noticed OBV slowly sink beneath the highlighted stage.

Conclusion

The falling OBV and the downward RSI indicated that promoting stress was intense behind Litecoin. The increased timeframe worth motion confirmed the vary lows being damaged, including additional confluence to encourage shorting the asset. An entry could possibly be taken close to the $60 stage. The $57, $51, and $50 ranges can be utilized to take revenue, with a conservative stop-loss at $63.9.

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