[Update: Litecoin Price Analysis As of 23rd January]
In our technical price analysis of Litecoin yesterday (which can be read below), we pointed out that the price is likely to continue falling. Our analysis has once again proven to be true as LTC prices continue to plummet. It is a bad time to be investing into the cryptocurrency as Litecoin seems to be on a free-fall – a trend which is expected to continue for quite some time and will hurt the currency severely.
24 hours ago, the price of Litecoin was close to $192. However, since then it has been on a decline and has now tumbled down to $172. A $20 fall since yesterday. This fall is expected to continue as we progress into the week. Yesterday, Litecoin was already below the line of support ($199). However it was yet to enter the black dotted lines – which was the downtrend channel.
Today, after a slump of another $20, LTC has now entered the downtrend (as seen in the graph above) and is certainly expected to continue on the free fall. If this trend continues – the price of the cryptocurrency might go down to $120 before meeting a minor support. However, this too can be breached as the bears control the markets at this point. Ultimately, the crash can bring the prices down to as low as $105 before a strong support comes in.
We advised setting up a stop-loss at $150 yesterday. However – seeing that this is a strong sign of a downtrend, we’d recommend setting it up a little higher, at $160. The recent slump has affected the markets adversely and has slowed them down. As always, trade cautiously!
[Litecoin (LTC) Price Technical Analysis as of 22nd January]
Litecoin (LTC) has been around for quite a long time now. Billed as the silver to Bitcoin’s gold, the currency gained major momentum late last year. However the past couple of weeks have not been so good for the currency. Litecoin’s prices have been falling continuously since December – and it appears that this dangerous trend is going to continue.
Litecoin peaked in mid-December when it hit the all-time high of $366. However, since then, the currency has shown a gradual decline in the price. It has since lost over 50% of its value and reached an all-time low of $152 earlier this week. While the price has rebounded by $40 – the trend continues.
A market analyst from tradingview shows that the currency is likely to stay below the line of critical support which is at the $199 mark. As the price keeps falling below this line, a bearish trend will develop, recovering from which would be hard for Litecoin.
The black dotted line in the graph above is a downward trend – a bearish channel in which Litecoin is seemingly trapped and unable to recover from. If this trend continues, Litecoin (LTC) will continue to lose value and reach $140, $120 and eventually the $105 mark where it will find another support.
As long as the Litecoin price remains in the dotted lines, the bears are in control. Litecoin faced a major market correction, which it barely recovered from before the bloodbath began. The recent ‘bloodbath’ phase where the entire market was on a downward trend was another blow to Litecoin prices and it is going to be interesting to see if the currency can recover from here.
For those holding Litecoins, the best advice would be to create a stop-loss at about $150, trading below which could be quite risky as the price might fall by another $50 if this analysis is to be believed.
Disclaimer: Neither the management nor the authors at CryptoCrimson are responsible for any losses, financial or otherwise, which may occur due to investing based on our articles. These are market predictions – which are not set in stone. The information provided is only for educational purposes and cannot be considered a financial advise.