For most of the past year, the price of Litecoin has been declining. LTC fell below $300 in November after failing to stay above that level. Since January, the coin has been testing the $100 mark. The overall sentiment in the crypto market, though, remains gloomy.
Although this cryptocurrency has been hitting lower highs, which is a negative indicator, the $100 support zone has held.
The price trades in a relatively narrow range with very little price movement. From a technical standpoint, the price of LTC is lingering near the support zone, from which a price rebound is predicted. The price retraced a multi-week support level after marking the recent highs. In the five sessions since then, the price of LTC has risen.
If Litecoin purchasers can rise beyond the 50-day EMA at $116.55 on the daily chart, it will enhance the price’s bullish arguments because it will indicate the crossing of a big upside barrier. The bulls will target the April 6 highs of $123.24 as their target.
A move below the session’s low, on the other hand, would undermine the asset’s bullish analysis. On the downside, the price might drop below the psychological level of $100.
Despite the fact that LTC was able to recover and trade at $100 on April 27, it may not be able to generate enough demand for a near-term gain. There may be little reason to expect a long-term positive reversal in the market unless the bulls successfully push the market price above the moving averages.
A week ago, there was a surge in activity in wallets holding more than $100k. However, the price of Litecoin did not rise as a result of this. Instead, it remained bearish and continued to fall. The sellers failed to break below the $100 support level yesterday. That was a promising indication. However, because the bearish pressure is still present today, the digital asset may witness a downside breakout.