- The RSI signals continued bear trend below the year-long descending declines.
- Litecoin is down 80% from the all-time high in comparison to the 71% drop of the larger crypto market.
Litecoin is declining within falling wedge pattern on the daily chart. The shooting star candles in the recent months have been unable to sustain growth above the moving averages (both 50SMA and 100SMA). Applying the DMI signal indicator on the chart emphasizes the grip that the bears have had on the market. The bullish signals are scattered across the chart in comparison to the bear signals that continue to dominate the price action.
At the moment, Litecoin price is trading at $53.19 following a 1.25% drop in its value on the day. A slight correction from the lows traded last week lost its mojo short of $60.00. The long-term bear trendline point towards decreasing momentum. The RSI also signals continued bear trend on the same daily chart.
Litecoin has since the year began maintained a downtrend ignoring several network news. For instance, the founder of Litecoin, Charlie Lee announced a game changer partnership with TokenPay where both companies contributed towards the purchase WEG Bank in Germany.
The volatility in Litecoin price reflects that of the entire cryptocurrency market. This makes long-term investments a challenge for investors. For instance, LTC/USD has declined greatly from the all-time highs at the beginning of 2018. Litecoin is down 80% from the all-time high in comparison to the 71% drop of the larger crypto market.
The status quo in terms of Litecoin performance is bullish in the short-term but bearish in the long-term. A break above the year-long trendline resistance could see the crypto revamp the trend towards $100. In the meantime, the support at $50.00 must be defended to prevent deflation into the $40 range.