While LTC may not be among the top cryptocurrencies by market capitalization, it still has great value to investors. However, if there is an active downtrend, interest may fade.
The situation is dire for the price of LTC
Litecoin has a significantly higher acceptance rate than most other altcoins. However, it is currently not considered a reliable investment vehicle.
After being stuck below the downtrendline for almost 7 months, Litecoin has risen above it for almost 1 month but is still unable to sustain the upward momentum. After that, the price fell back below the trendline and is currently trading at $ 147.
But when LTC began to decline, it triggered the RSI pattern that had appeared earlier. At the macro level, Litecoin is falling into a longer bearish neutral zone last seen in June when the price fell 63.5%.
This pattern is not accidental as certain cases have occurred before. The April rally kept the RSI bullish for about 46 days, the next rally in August also lasted 43 days, and the most recent rally in November also lasted 46 days.
LLitecoin . Price action | The source: TradingView
So if we do the same for the bear market, the RSI is now just 40 days from entering the bearish neutral zone and is expected to fall to 45.86%. If it takes 63 days and falls 63.5%, LTC will hit $ 101.6 on Jan 20, 2022.
LTC investors became cautious when they saw the first red candle on December 24th. The volume suddenly rose to $ 10.4 billion and, interestingly, the whales were the group that made up most of that volume. Transactions valued at more than $ 100,000 totaled $ 9.89 billion in just one day on December 24th.
Big LTC trading | The source: In the block
Therefore, the volume and scope of the token movement will continue to decrease in the future. Unless LTC flips the downtrend line in support, it will not win investor confidence.
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