Market Activity To Determine Litecoin’s Fate
Litecoin is fighting to reclaim the top spot in the crypto market after the digital asset lost about 4% in 24 hours. In a market that has seen most digital assets confirm to the bears, Litecoin has also moved in the same direction as other coins. For instance, leading digital asset, Bitcoin has made a u-turn and is moving back to its previous price of $39,000 after it failed to hold steady above its previous $40,000. Litecoin may go way below the $155 support level in the same vein before it eventually crosses past its first resistance, which is at $160.
Litecoin set to go in a bearish direction
Even though the digital asset crossed above the first resistance, it would need the bulls’ influence to go way above the next resistance of $165 before going on to cross the last one at $170. If selling action gradually drags the coin below the $145 price zone, then the digital asset should be able to go way below the boundary on the chart. If the bears assume their position in the market, the market could go down below $140 before touching the other support level at $135.
Traders would be comforted that the next support levels are not far from each other as the digital asset currently has its last support at $130. The Relative Strength Index of the asset is currently below the 55 level, and if the bearish run continues, it could go way below in the market. Also, should the signal line drop, the digital asset would not be able to make a rebound in the coming days as it would need only the buyer’s intervention to make a surge.
Sellers are still in control of the Litecoin market
Everything is the same in the trading pattern of the digital asset against Bitcoin as it is also trading in a decline way against the leading asset. With the price of the asset falling, buyers are presently battling the selling action in the market to push the value of the coin close to 0.037 BTC. If Litecoin eventually succumbs to the selling pressure and goes below this price zone, then it could collapse entirely and trade in the declining zone for a long time.
If the downtrend continues, then the digital asset could reach its support level at 0.034 BTC. Also, Buyers might be more involved in the market if they are to see it crossway above the 9 day and 21 day moving average. If this happens and the market trades higher, they would be comforted because the market can stay above the 0.045 BTC zone for a long time. The sellers are still controlling the market for the main time as the buyers are looking to wrestle control out of their arms.