Rough patch for Litecoin? Predictions suggest another price plunge

• LTC shaped a bearish flag at press time, indicating additional nosedive regardless of the current plunge.
• Lengthy-term holders have been liquidating their positions.

Litecoin [LTC] was one of many high cryptocurrencies hit exhausting by the market crash on the third of December. This was as a result of it misplaced 11.17% of its worth, in keeping with information from CoinMarketCap.

Although market costs have began to get well, it may not be the identical for LTC.

Analyst Ali Martinez put out this prediction. In line with Martinez, LTC was dealing with intense promoting strain. This sell-off was one of many causes the value nosedived from $72 to $65 at press time.

Nonetheless, which may not be the top of a torrid season for Litecoin, Martinez opined.

In his submit on X (previously Twitter), the analyst shared a 3-day chart that confirmed LTC forming a bear flag. On account of the formation, Martinez famous that the coin may sink to $38.

Submit-recent dip, the outlook for #Litecoin seems difficult. If the promoting strain continues, $LTC may see a push right down to $38, probably confirming a bear flag formation. pic.twitter.com/Y21U6eR5tw

— Ali (@ali_charts) January 3, 2024

Can’t discover any hint of bulls within the image

Sinking to $38 would imply that LTC would lose 1.71x its press time worth.  Nonetheless, the prediction would solely come to move if sellers proceed to push the value motion additional.

If this occurs, Litecoin’s candlestick sample may prolong downward whereas confirming the bearish flag formation.

The projection was additionally validated by the Hodler Internet Place Change. The metric reveals the month-to-month place change of long-term buyers. When Litecoin HODLers accumulate a brand new place, the net change is optimistic.

In line with AMBCrypto’s evaluation of the metric, the web change flipped unfavorable on the twenty eighth of December 2023.  It has remained the identical since then. This drop indicated that Litecoin HODLers have been cashing out as a substitute of accumulating.

Supply: Glassnode

In addition to on-chain information, AMBCrypto went forward to judge LTC’s technical state. At press time, the sharp fall indicated by the crimson candlestick confirmed the extreme promoting strain.

LTC stays the autumn man

A take a look at the MACD additionally indicated that momentum was bearish. Indicators from the MACD validated the thesis as a result of the 12-day EMA (blue) had crossed beneath the 26-day EMA (orange).

This place instructed that LTC would maintain oscillating downwards. Moreover, the 50 EMA (yellow) had shaped a loss of life cross over the 20 EMA (cyan). This buttresses the purpose that LTC was headed downwards.

However what are the following targets for Litecoin? In line with the 0.236 Fibonacci retracement, LTC may drop to $63.72 inside a short while.

Supply: TradingView

Is your portfolio inexperienced? Take a look at the LTC Revenue Calculator

Nonetheless plainly merchants aren’t but giving up on Litecoin. AMBCrypto drew this inference from the Funding Fee, which was 0.01% at press time.

This optimistic studying means that there are extra merchants with bullish convictions, than these on the bearish facet.