- Litecoin tailed off from $100 with a drop of 21%.
- The support line at $83 is vital since a fall through it could plunge the price further down.
- If more momentum dies then, it may take Litecoin to $43 in the near future.
Recent price growth for Litecoin took a significant hit in losses amounting to 21.89%, returning its value down to $100.003799, which was trading low after trading at $108.084902. Monthly LMACD now reveals a loss in momentum, indicating that however much buying was going on, it is slowly fading. According to Tony, Litecoin initially broke above the upper Bollinger Band in what seemed to be a bullish breakout, but the latest candlestick formation looks bearish. Price closure below the basis line could therefore lead to a false breakout, dragging it down to the lower Bollinger Band at $43.
Bollinger Bands Suggested Possible Downside
The price structure changed for Litecoin with added volatility as the price struggled above the basis line at $83. For history, breaking above the upper Bollinger Band always signaled that the market would be able to sustain upward movement but was thrown back sharply. Now, the lower JB target at $43 has become a major watch level, especially since the selling activity has increased. Close resemblance of current month candlestick patterns to the previous notable pullbacks makes the support for this month $83. Below it, the price would get downward pressure further into the bearish outlook.
LMACD Weakens as Selling Pressure Builds
The LMACD, which is a trend-momentum-tracking indicator, provides a warning since its blue line lingers around 0.057227, while the negative line has turned that negative -.004669 for signals. It largely characterizes bullish momentum,, which has caused the market to feature more weakness. Thus confirming a bearish crossover would help hasten the decline in Litecoin, resulting in a critical target on the downside at the lower Bollinger Band. If the bearish sentiment presses deeper, the same current move may extend well past $83, making another downward correction more plausible.
Market Sentiment and Next Moves:
In the case of further weakening, Litecoin will be under trader scrutiny on whether the price would be able to recover above $83 before going directly toward $43. The Bollinger Bands and LMACD seem to be preparing for a major downturn, leaving much caution required. From this perspective, should Litecoin fail in its determination to regain near highs again, then the phase of longer dips overall would be extensive, within which the range around $83-$43 proves critical for price activity in subsequent weeks.
