Litecoin has plummeted over 60% since March
The launch of the MWEB privacy upgrade contributed to a bearish sentiment
LTC trades lower than $50 psychological support level
Litecoin (LTC/USD) has been trading in lower highs and lower lows since March 2022. The trend has led to a 64% decline from $132. The current trading price is $47, with a daily drop of 4.36%.
Litecoin is one of the earliest crypto projects that was forked from Bitcoin in 2011. LTC token is a utility crypto powering transactions in the network and acting as a store of value.
Many factors have contributed to the decline in LTC. The launch of Litecoin’s MimbleWimble update received negative sentiment leading to delisting in Binance and multiple Korean exchanges.
Litecoin is also a victim of the overall cryptocurrency bearish sentiment, which has seen most tokens dip. The token was designed to complement bitcoin with a faster block time and larger supply. Due to its similarity with bitcoin, Litecoin is affected by the same sentiment facing BTC. Some of them include the hike of interest rates by the Federal Reserve. The economic intervention with the rising inflation rate has forced investors to less risky assets.
Currently, most cryptos tokens are flashing red lights. Bitcoin has dipped 4.45% in the past day, trading at $19,623. Ethereum is also down 7.88% in the same period at $1,056. BNB, XRP, and Cardano have also plunged 4.3%, 4.88%, and 6%, respectively.
LTC loses $50 Psychological support level
Source: TradingView
According to Litecoin’s daily chart, LTC has been bouncing off a descending trendline. The token has also lost key support levels at $98 and $60. Furthermore, at the $47 support zone, LTC is looking bearish and can trade lower. The price outlook shows that if the LTC loses the currency support, more positions will be liquidated even as the RSI remains above the Oversold zone.
Closing thoughts
We do not recommend a buy of LTC at the current level as the technical and fundamental analysis points towards a bearish momentum. Investors should remain patient until there is a change of sentiment. The sell-off in LTC is related to both internal factors and the aspects around the macroeconomic level.
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