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Grayhoood, a crypto trader, saidon X that Litecoin is currently experiencing a bearish trend, emphasizing the ongoing weakness in price action. Over the past 24 hours, LTC has decreased by 2.8%, and the candlestick charts reflect a noticeable downward movement.
As shown in the chart he referenced, LTC started the day around $89.00 but faced a sharp decline, dropping to $87.00 before managing a brief recoveryto $88.50. However, the price has since fallen again to $84, indicating sustained selling pressure in the short term. Momentum Fades: RSI Drifts Toward Oversold Territory
According to Grayhoood, current technical indicators suggest that Litecoin may face further downside, with multiple metrics aligning to support a bearish short-term outlook. One of the primary indicators in focus is the Relative Strength Index (RSI), which appears to be drifting toward oversold territory. Related Reading Indecisive Close For Litecoin, But The Real Story Lies In BTC.D’s Next Move 1 week ago
While such a move could hint at a potential bounce, Grayhoood cautions that it also signals bearish sentiment in the market. Beyond the RSI, momentum oscillators such as the Stochastic indicator and the Commodity Channel Index (CCI) are also painting a gloomy picture. Negative pressure mounting | Source: Grayhoood on X
These tools are typically used to gauge market reversalsand the strength of ongoing trends. In this case, both are tilting toward further downward momentum if no strong bullishcatalyst appears, especially as prices struggle to hold above the $87 support level. Short-Term Declines Contrast with Yearly Gains in LTC’s Moving Averages
The analystfurther highlighted a mixed outlook from Litecoin’s moving averages, suggesting a market caught between short-term weakness and long-term potential. In the near term, shorter-duration averages are flashing strong sell signals. These are driven by LTC’s recent negative performance, with a -9.0% drop over the past week and a -12.5% decline over the last two weeks, painting a clear picture of growing bearish momentumand sustained selling pressure. Related Reading Market Expert Projects ‘Undervalued’ Litecoin To Soar At Least 1,000% — Here’s How 1 week ago
However, the longer-term moving averages tell a different story. Despite recent setbacks, Litecoin has posted a 2.3% gain over the past year, which keeps the long-term trend technically bullish. This divergence suggests that while short-term traders may be responding to immediate price volatility and weakness, long-term investors could still see value in the asset, especially if broader market conditions stabilize or improve.
That said, the broader market sentiment currently leans bearish, weighed down by Litecoin’s inability to maintain key support levels amid recent price volatility. Even with long-term growth providing a degree of optimism, the prevailing trend is defined by downward pressure and uncertainty. Until short-term indicators begin to align with the long-term bullish structure, Litecoin may continue to face a challenging environment. LTC trading at $84.15 on the 1D chart | Source: LTCUSDT on Tradingview.com Featured image from Adobe Stock, chart from Tradingview.com