Litecoin Price Analysis: LTC Creates Fresh 14-Month Lows As Price Drops Below $40

  • Litecoin has dropped below the $40 handle for the first time since September 2017.
  • The market crash has found support at the $37 handle but it is unlikely to hold long term.
  • Support moving forward: $37, $36.54, $34.25, $30.96, $28.01, $27, $26, $24.70, $21.52.
  • Resistance moving forward: $40, $43.79, $49.21, $50, $53.69, $57.35, $60, $62.

Litecoin has seen a further tumble in price as the market slips below the $40 handle to the lowest price seen in 2018 at $37.07, at the time of writing. Litecoin has seen a 13% price decline over the past 24-hour trading period and a further 27% price decline over the past 7-day trading period.

Litecoin is presently ranked in 7th position in the overall market cap rankings, with a total market cap value of $2.19 billion. It has seen a turbulent 30-day trading period as the market has witnessed a precipitous 30.82% price fall. The 67-month old project is now trading at a value that is 89% lower than the all-time high price.

Let us continue to evaluate LTC/USD over the long term and evaluate the market behavior.

Litecoin Price Analysis

LTC/USD – LONG TERM – DAILY CHART

Analyzing LTC/USD from the long-term perspective above, we can see that price action has reached a low not seen since September 15, 2017, when the market had dropped to a low of $32.45.

The market has now also placed the 2018 fresh low as it breaks below the $40 handle. We can see that during November 2018, LTC/USD had fallen below support at $53.69, and has continued to fall until it reached the current level of support at the downside 1.272 Fibonacci Extension level (drawn in purple) priced at $37.07.

Let us continue to analyze price action a little closer over the shorter time period and highlight some potential support and resistance moving forward.

LTC/USD – SHORT TERM – DAILY CHART

Taking a closer look at LTC/USD, we can immediately notice that price action had remained relatively stable throughout September and October 2018. The market had held above the short-term downside 1.414 Fibonacci Extension level (drawn in turquoise) priced at $49.21.

However, as November started to trade, price action plummeted below the support.

The market fell into the aforementioned support at the $37 handle. We can see that this support is further bolstered by the downside 1.618 Fibonacci Extension level (drawn in turquoise) priced at $37.51.

Moving forward, if the sellers continue to drive the price of Bitcoin lower we can expect LTC/USD to also continue to drop. In this bearish scenario, we can expect immediate support below at the short-term 1.272 and 1.414 Fibonacci Extension levels (drawn in green), priced at $36.54 and $34.25 respectively.

Further support below this can then be located at the long-term downside 1.414 Fibonacci Extension level (drawn in purple) priced at $30.69.

If the bearish momentum continues to drop LTC/USD to further fresh lows, the market could see further support at the $28.01 handle, followed then by the $24.74 handle.

On the other side of the equation, if the $37 handle support holds and price action starts to recover, we can expect immediate resistance above to be located at the psychological round number level at $40.

If the buyers continue to push the market above the $40 handle, we can expect higher resistance to then be located at the previous medium-term downside 1.272 FIbonacci Extension level (drawn in red) priced at $43.79. Resistance following this can be expected at the 1.414 Fibonacci Extension level (drawn in turquoise) priced at $49.21.

If the bullish ascension can continue above the $50 handle, we can expect further resistance above to be located at the $53.69 handle, followed by the downside 1.272 Fibonacci Extension level (drawn in turquoise) priced at $57.35.

The RSI is presently trading in extreme oversold conditions as it trades at a level not seen since December 2016. The RSI will need to recover back toward the 50 handle at one stage but the bearish momentum does not show any signs of slowing down at this moment in time.

Let us continue to analyze Litecoin against Bitcoin over the long term and assess the market dynamics.

LTC/BTC – LONG TERM – DAILY CHART

Taking a look at Litecoin against Bitcoin over the long term, we can see that the past 7 months have been difficult for Litecoin.

Price action has continued to drop throughout the year until a relative period of stability emerged during August 2018 when price action reached support at the downside 1.272 Fibonacci Extension level (drawn in red) priced at 0.008306 SATS.

As the market reached this level of support, it proceeded to trade sideways during September and October 2018. However, during November we can see that price action for LTC/BTC has slipped further lower toward support at the downside 1.414 Fibonacci Extension level, priced at 0.007159 SATS.

Let us take a closer look at price action for LTC/BTC over the recent few months and highlight some potential areas of support and resistance moving forward.

LTC/BTC – SHORT TERM – DAILY CHART

Upon closer inspection of LTC/USD, we can see that price action had reached support at the downside 1.272 Fibonacci Extension level priced at 0.007042 SATS before rebounding in trading on November 19, 2018.

If price action closes below this level of support over the next few trading sessions, we can expect further support below to be located at the short-term downside 1.618 Fibonacci Extension level (drawn in green) priced at 0.006829 SATS, followed by the downside 1.414 Fibonacci Extension level (drawn in blue) priced at 0.006366 SATS.

If the bearish sentiment continues to drop LTC/BTC even lower, we can expect a range of support around the 0.005500 SATS handle.

The RSI is trading close to oversold conditions within this market, indicating that the sellers are in complete control of the market momentum. For a sign that the bearish momentum is fading, we can look for the RSI to begin its recovery back toward the 50 handle.

 

2 Comments

  • kewan
    Posted November 20, 2018 11:54 am 0Likes

    Awsome

  • kewan
    Posted November 20, 2018 11:54 am 0Likes

    Awsomeeeee

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