Litecoin Price Analysis: LTC vulnerable to massive sell-off if $100 gives way
|- Litecoin retreated from the recent high amid healthy correction.
- The price may extend the decline if $100 is broken.
Litecoin (LTC) topped at $124.7 on December 19 ad started the correction. At the time of writing, the token is changing hands at $102, down about 20% from the recent high. The global see-off on the cryptocurrency market increased the bearish pressure on LTC; however, it looks pretty healthy relative to other major digital assets.
Currently, Litecoin sits in 6th place in the global cryptocurrency market rating with a current market capitalization of $6.8 billion. Notably, LTC's average daily trading volumes hit $12 billion, twice as much as its market value.
Litecoin's correction is not over yet
As FXStreet previously reported, LTC was ripe for the healthy correction after a strong bullish momentum that took the price from $70 to $124 in less than two weeks. A sell signal presented by TD Sequential indicator on December 21 was confirmed by the sell-off.
LTC, daily chart
However, the price seems to have found support on approach to $100. This psychological barrier may serve as a local bottom, but once it is cleared, the correction may be extended to $90. This former resistance may be verified as a support and serve as a jumping-off ground for a new bullish move. If $90 gives way, daily EMA50 at $80 will come into focus.
LTC, In/Out of the Money Around Price (IOMAP)
On the upside, LTC needs to clear a strong barrier located on the approach to $110. In/Out of the Money Around Price (IOMAP) data shows that over 53,000 addresses purchased 4.2 million LTC from $105 to $108. If this area is cleared, the buying pressure will increase. The price may quickly reach the next target of $117, followed by the recent high of $124.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.