Litecoin [LTC] drops beneath range lows, could $50 be next

Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the opinion of the author.

Litecoin was on a downtrend main into Could, and in mid-Could, it shaped a spread between the $60 and $74 ranges. At press time, the value appeared set to drop additional after closing a session beneath $60.

USDT dominance stood at 6%, on the time of writing, and has oscillated between the 5.84% and 6.5% ranges over the previous three weeks. If this metric does certainly advance, it might be an indication that capital was fleeing from the crypto-assets and into the stablecoin USDT, which is a sign of promoting strain.

LTC- 12-Hour Chart

Supply: LTC/USDT on TradingView

The development has been downward for LTC since late November, and in April and Could, the value was unable to defend each the $100 area in addition to the $80 space. Each of those zones have been flipped from demand to provide zones, and the value continued to sink decrease to the $60 mark.

Previously three weeks, the value appeared to kind a spread between $60 and $74 (white), with the midpoint at $67 which has served as each help and resistance in the identical time interval.

The day before today of buying and selling noticed LTC slip beneath the vary lows and under the $60.4 mark. The Fibonacci extension ranges (pale yellow) confirmed doable southward targets to be at $57.1, $51.7, and $46.4.

LTC- 4-Hour Chart

Supply: LTC/USDT on TradingView

Zooming into the H4 chart, we are able to see that, aside from the Fibonacci extension ranges, the $50 stage has additionally been a powerful greater timeframe help stage.

A retest of the $60 mark might materialize within the subsequent day or two, and an entry to a brief place could be thought of. A stop-loss could be set simply above $62 for aggressive merchants. For the reason that $63.5 space has acted as resistance up to now couple of days, a extra lenient stop-loss could be set close to the $64 mark as effectively. The $57, $51, and $50 ranges can be utilized to take revenue.

Supply: LTC/USDT on TradingView

The H4 RSI was under the impartial 50 line and fell beneath the 35 mark up to now few hours of buying and selling. This growth indicated robust bearish momentum behind LTC. The Superior Oscillator additionally shaped purple bars on its histogram, to point out strengthening downward strain.

On the OBV is marked a horizontal stage (inexperienced) which has been defended, for probably the most half, all through Could. Nonetheless, the earlier two days of buying and selling noticed OBV slowly sink under the highlighted stage.

Conclusion

The falling OBV and the downward RSI indicated that promoting strain was intense behind Litecoin. The upper timeframe worth motion confirmed the vary lows being damaged, including additional confluence to encourage shorting the asset. An entry could possibly be taken close to the $60 stage. The $57, $51, and $50 ranges can be utilized to take revenue, with a conservative stop-loss at $63.9.