A recent article notes that when the price started to decline at the start of the year, many thought this was a natural correction after huge price jumps at the end of the year.
However, the mainly bearish market has been going much longer than previously thought. The price would have behaved as if it were starting an upward race just to decline even further. This caused the loss of interest in the currency and some sell-offs at a loss.
The future could be brighter for Litecoin
Due to a number of factors, the price of Litecoin could soon recover.
An important factor that presents hope for the future is that Litecoin is in oversold territory. There was a large amount of panic sales and excessive reaction to the market. Almost all LTC owners are considering selling the currency because it has continued to fall. When a resource goes deep into oversold territory, the price should rise soon. More and more people will start to think that prices are so low that it's time to buy. The oversold condition is likely to be short. However, expansion could only recover part of the lost value of Litecon. The transition could be gradual.
ItBit is a digital trading platform regulated by the New York Department of Financial Services (NYDFS) for the trade in digital currencies in the United States. Being regulated, it should be interesting for investors. The NYDFS has given ItBit permission to list LItecoin (LTC). This encouraging news could lead to an increase in the Litecoin price.
Finally, JP Morgan's internal cryptocurrency prediction report states that Litecoin and others like Bitcoin, Ethereum, Ripple are coins that will survive. This can help to dispel the fears that Litecoin is about to leave.
Analysis of the last week of the Litecoin price
A recent article finds that the price of Litecoin (LTC) was under pressure below the resistance levels $ 59.50 and $ 60.00 dollars. There is a key bearish trend line with resistance at $ 56.00 on the hourly chart. Litecoin could trade in a range for a while before it can recover above the $ 57.00 level.
During the last week there were heavy falls below $ 65.00 and $ 60.00. The BTC was trading below the support level of $ 55.00 but buyers appeared near $ 52.00.
A break above the trend line of $ 57.00 and the simple 100-hour moving average (SMA) is needed to bring the price back to the resistance levels $ 59.50 and $ 60.00. If buyers can not raise the price above the $ 57.00 level, then they could return to the $ 52.00 level and even reach $ 50.00.
Overall, the price of LTC is under strong pressure. All recoveries are likely to face resistance at both $ 57.00 and $ 60.00. Only a close above $ 60.00 will bring the price back into a positive bullish zone.
The trend has been largely declining for most of the day, although there are signs of recovery throughout the day. At 0.05 UTC the price was $ 55.35 while for 13:14 it was down to $ 53.54. At 7:04 pm the price recovered from over $ to $ 54.61. While the price is in trouble it has not yet returned to the $ 52.00 level. Buyers might come back to thinking that the price is now a bargain as suggested in the attached video. The price of Litecoin can be found here.