Before the crypto market crashed earlier in the week, Litecoin was probably a coin that promised a lot of bullishness. At that point, LTC had ended its 4-week consolidation phase, and the bulls managed to maintain the $51 support level. That was before the coin was tossed. But this week things have gone from bad to worse. Here are some facts:
LTC loses $51 support as market pressure builds up
However, the coin has managed to sustain the price action above the next $41 support level.
If this continues, LTC could indeed avert a major drop in the coming weeks.
Data Source: TradingView
Litecoin Price Prediction – Is a Trend Reversal Coming
Right now, the overall sentiment and trends in the crypto market point towards major losses. The market is in a complete bearish state, and trading volume has dropped significantly. So it’s hard to see any sustained bullish environment. However, there are some positives from the LTC perspective.
Firstly, despite the massive sell-off reported in crypto this week, LTC’s losses were much smaller than those of other major coins. Moreover, the coin has managed to stop the bears at $41. It shows a lot of flexibility.
Furthermore, LTC has bounced back with a gain of 10% over the past 24 hours. These conditions suggest that LTC will be able to stay above the $41 support level for the time being. While this may not trigger a decisive bull run in the near term, it could limit further downsides.
How to trade LTC for now
The downside risk below $41 is huge. If LTC loses this support, we could see a drop of 40 – 50%.
So, the key is to give the coin a few days. If the bulls are still able to defend $41, you can buy in the near term.