by Latest reports showed Litecoin’s daily transaction count remains somewhat the same as three months ago, hovering beyond 100K. Also, the active address count stayed unchanged, standing near 300K, similar to February. That reflected faded growth for LTC as far as investors and users are concerned. Combined with broad market fear, a massive slump for Litecoin on the price charts was less a surprise.
Litecoin – 24Hr Timeframe
The daily chart shows the token made multiple lower lows and lower highs since the late sessions of November. Moreover, Litecoin hasn’t breached any of the downtrend’s swing peaks (lower highs) since November, indicating a massive bearish momentum.
The region at $105 – $115 has been crucial over the past sessions. For instance, the alt rallied towards the $300 highs after retesting this level in July 2021. However, Litecoin didn’t record significant actions in this region except in January, when LTC rebounded to $140 from $110 before a quick reversion to lower levels.
The past couple of weeks saw Litecoin surrendering the $100 psychological level to bears. The value area of $75 boasts some significance in the lower timeframes. With the concealed bearish divergence between the momentum and Litecoin price, traders can use the $75 – $80 range to execute short positions.
Reasoning
The previous two weeks had the Relative Strength Index registering a higher high as the price recorded a lower peak. This concealed bearish divergence suggests a downside continuation, and it might retest the $60 – $66 zone again and potentially break it. Also, the Relative Strength Index remained beneath 50-neutral since April, highlighting ongoing bearish trends.
The AO (Awesome Oscillator) stayed well below the zero-line, displaying massive downside strength. Also, the on-balance volume dropped lower, hovering under the support barrier it formed in March. Meanwhile, the Chaikin Money Flow rose past -0.05 but might lower soon.
Final Thought
Litecoin indicators displayed massive selling momentum plus consistent bearish strength. Also, the price charts indicated a bearish structure for the token. Interested individuals could use the $75 mark to execute short positions. Meanwhile, assessing broad market sentiment is crucial for money-making undertakings.
