The Litecoin (LTC) market, which had been enjoying a bullish trend over the past two weeks, took an unexpected downturn during the weekend. The weekly bar closed below the crucial support/resistance level of $100 and the 200 Moving Average (MA), signaling a shift in market sentiment.
This prompts a deeper analysis of the market dynamics and expert opinions on what lies ahead.
Bearish Outlook Emerges
Despite opening at $93.2 on Monday during the early London market, Litecoin’s trading volume remained relatively high at around $577.69 million, surpassing that of most altcoins. The market’s long-term potential is further bolstered by its substantial user base, with over 9.5 million holders, and a robust hash rate of approximately 778.84 TH/s.
Read More: Litecoin Halving is a Month Away; Will LTC Price Regain Bullish Momentum?
Litecoin Price Analysis
Renowned crypto analyst Kaleo, who commands a following of more than 593k on Twitter (@CryptoKaleo), presents compelling reasons to consider shorting the Litecoin market at its current levels. Kaleo points out that Litecoin’s macro price has recently been rejected at a falling logarithmic resistance, indicating the presence of increased bearish pressure. Drawing a parallel to the price action observed in 2021, Kaleo suggests that Litecoin may be poised for a new low.
Kaleo further highlights Litecoin’s struggles in the short-term, particularly in relation to Bitcoin. The Litecoin price has been steadily declining against Bitcoin, and the hourly support level in the USD derivative is no longer reliable.
The Third Halving is Close!
With the Litecoin halving event scheduled in 23 days from Monday, much speculation has surrounded its potential impact on the market. However, Kaleo expects the underlying value of Litecoin to decrease, similar to previous halving events, contrary to the prevailing bullish sentiment.
Now that you’re up to speed, we want to hear from you. What are your thoughts on Litecoin’s bearish shift and the analyst’s predictions?
