After trading sideways and showing little appetite for an upward trend, Litecoin has finally broken below a key support area. The coin is now facing a major downtrend and may crash in the coming days. Here are the main takeaway points:
LTC broke below the crucial support level of $64.34.
As a result the coin is exposed to a 30% downswing.
However, there is still a decisive downside break for LTC and it may find support this week as well.
Data Source: TradingView
LTC Price Analysis: What to Expect Next
At the moment, it doesn’t look like LTC will crash. In any case, the bulls are trying to retest the $64 mark. The coin would need around 5% over the next 24 hours to regain support. However, although this may seem like a simple matter, LTC has actually been holding below that price for most of the day.
We do not think there is enough buying activity in the market to push LTC above $64. As a result, we expect the coin to remain close to the price at the end of the day but ultimately, LTC will not close above this price.
This would trigger a decisive selloff in the coming days and LTC could see a drop of around 30%. The altcoin will eventually settle around $51 in this bearish cycle before it tries to find its next run. But if more weakness occurs and LTC loses $51, it could drop to $40.
How to trade this set-up?
The downside risk for LTC is significant right now. Best you can do is wait a few days to see if the bulls can reclaim $64 and hold price action above it.
But if you are looking to buy LTC for the long term, this would be an opportunity to cheapen it when it is around $51 or so.