Litecoin is down more than 60% since March
The launch of the MWEB privacy upgrade contributed to the bearish sentiment
LTC is trading below the psychological support level of $50
Litecoin (LTC/USD) is trading lower highs and lower lows since March 2022. This trend has led to a 64% drop from $132. The current trading price is $47 with a daily decline of 4.36%.
Litecoin is one of the early crypto projects that was forked from Bitcoin in 2011. The LTC token is a utility crypto powering transactions in the network and acts as a store of value.
Several factors have contributed to the decline in LTC. The launch of Litecoin’s MimbleWimble update drew negative sentiment which led to delistings on Binance and several Korean exchanges.
Litecoin is also a victim of the overall cryptocurrency bearish sentiment, which has seen most tokens dip. The token was designed to complement bitcoin with faster block times and larger supplies. Because of its similarity to bitcoin, Litecoin is influenced by the same sentiment that BTC faces. Some of them include a hike in interest rates by the Federal Reserve. Economic intervention coupled with rising inflation rate has forced investors to look for less risky assets.
Currently, most crypto tokens are flashing a red light. Bitcoin is down 4.45% over the past day and is trading at $19,623. Ethereum also fell 7.88% to $1,056 in the same period. BNB, XRP and Cardano are also down 4.3%, 4.88% and 6% respectively.
LTC loses $50 psychological support
According to Litecoin’s daily chart, LTC is bouncing off a downtrend line. The coin has also lost key support levels at $98 and $60. Besides, LTC is turning bearish and can trade lower near the $47 support area. The price outlook suggests that more positions will be liquidated if LTC loses currency support, even if the RSI remains above the oversold area.
We do not recommend buying LTC at current levels as technical and fundamental analysis is pointing to a bearish move. Investors should be patient till the sentiments change. The selloff in LTC is related to both internal factors and aspects surrounding the macroeconomic level.