Invested in Litecoin? Know what to expect from the current market structure

Disclaimer: The findings of this analysis are the authors’ sole opinions and should not be considered investment advice

Litecoin bears have taken a firm foothold at $143 in recent weeks and the price has fallen below the $110 area again. The market structure on the higher time frames was bearish and it looked like it had taken a downward turn again. Market fears didn’t help either. Unless the price can move back above $120, the bearish bias is likely to continue and push prices down towards $95 and $80.

LTC-1D

Source: LTC/USDT on TradingView

The price has made a series of lower highs to $282 since that pump in late October. The $180 area flipped from support to resistance and started a downtrend. In January and early February, the price attempted to move past the $140-$150 range and was rejected on both attempts.

After this rejection and the drop below USD 120, bearish momentum strengthened. It was possible that Bitcoin and the broader crypto markets had found a local bottom, following arguments that the news of the invasion had been “priced in”.

Whether this was true or false was an entirely different subject. One point to note, however, was that USDT dominance reached 5.19% just a few hours ago and was at 4.7% at the time of writing.

rode

Source: LTC/USDT on TradingView

The RSI had bounced back from the 34 value. In general, a move below this level of the RSI has led to a sharp decline, but has yet to happen in recent days. The Awesome Oscillator also dropped below zero.

The CDV has been in a steady downward trend alongside price, showing that selling volume has been dominant over buying volume in recent months.

Conclusion

The market structure pointed to heavy bearishness and the sales volume has also been stable in recent weeks. However, in the event that Bitcoin climbs back above $42k, Litecoin could see a bounce, but whether that would trigger an uptrend remains to be seen.

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