Litecoin is trading in the red today and could see further losses, according to the technical charts.
As of writing, litecoin (LTC) is changing hands at $194 and has depreciated by 5 percent in the last 24 hours, according to data source CoinMarketCap. The world’s fifth largest cryptocurrency fell to $189 earlier today, the lowest level since Feb. 23.
LTC was solidly bid for a better part of the last month, rising as high as $252 on Bitfinex on Feb. 20. However, following the litecoin cash (LCC) hard fork, the bull run faltered and prices fell to a low of $182 on Feb. 23.
Subsequently, LTC saw its price range narrow, forming a series of lower highs and higher lows, which ended with a downside break yesterday. The drop to 12-day lows seen today is largely in line with the weakness seen in the broader market, however.
For instance, bitcoin has depreciated by nearly 3 percent in the last 24 hours. Meanwhile, ether and cardano have dropped at least 5 percent each.
The total market capitalization of all cryptocurrencies stands at $431 billion today – down 16.79 percent from the high of $518 billion see on Feb. 16.
Litecoin daily chart: A series of lower highs
The “falling tops,” or lower highs, (marked by red arrows) followed by a break below $200 suggests the bears have regained control. The relative strength index (RSI) has also dropped below 50.00 (bearish territory) and indicates there is scope for further losses.
Weekly chart: Recovery from Feb. 6 lows ended?
The previous two doji candles signaled indecision after a sharp rally from Feb. 6 low of $106. The outlook, as per the weekly chart, would turn bearish if the cryptocurrency ends this week below $181 (Feb. 23 low).
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- LTC looks set to extend the decline to $181 (Feb. 23 low) as indicated by the bearish set up on the daily chart.
- A weekly close below $181 would open doors for a drop to $137 (Jan. 17 low).
- On the higher side, a daily close (as per UTC) above $210 (previous day’s high) would signal bearish invalidation. Meanwhile, a bullish reversal is seen only above the descending trendline resistance (currently seen at $230).
LTC and USD image via Shutterstock