Litecoin positioned to create new 2021 lows as LTC faces a 50% drop
|- Litecoin price falls and holds below the 2021 Volume Point Of Control.
- Zero support with the Ichimoku Kinko Hyo system exists.
- Significant downside movement ahead if buyers fail to support Litecoin.
Litecoin price faces a bearish trading environment across two of its primary Ichimoku charts. Furthermore, a total lack of support indicates that Litecoin has little preventing a lower freefall.
Litecoin price faces capitulation conditions as bears wait to pile in on any weakness
Litecoin price is trading at some of the most bearish conditions it has seen over the past two years. On both the daily Ichimoku chart and the weekly Ichimoku chart, Litecoin has fulfilled all Ideal Bearish Ichimoku Breakout requirements.
The recent collapse below the bear flag during last Saturday’s flash crash saw Litecoin recover a good chunk of that loss, but no follow-up rally has occurred. Instead, as Litecoin price neared the Tenkan-Sen and 38.2$ Fibonacci retracement at $180, it faced stiff resistance and pushed lower.
The only current support structure for Litecoin that exists is between the $100 and $120 value areas. The 2021 low is $104, and the 61.8% Fibonacci expansion is $120. It’s an ugly road for bulls who want to anticipate some reprieve in the interim, but the unfortunate fact is that the lower Litecoin moves, the faster it will move lower. The volume profile only becomes thinner and thinner the lower Litecoin drives down.
LTC/USD Daily Ichimoku Chart
The oscillators fail to give any hint of near-term support save for the Composite Index. There is hidden bullish divergence on the Composite Index, but Litecoin is not at a price support level, so the likelihood of the oscillator alone generating a supportive bounce is negligible.
To prevent any further bearish selling pressure, bulls need to accomplish the difficult task of returning and closing Litecoin near the $220 value area.
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