- Litecoin price sank 10% over the weekend in a brutal sell-off.
- LTC breaks lower in the European session and is on its way to a brutal sell-off.
- Expect to see a steep decline that bears a 20% loss.
Litecoin (LTC) price is still hungover from a brutal weekend where bulls dropped the ball on pushing price action above the important 55-day Simple Moving Average (SMA). With several important cryptocurrencies dropping on Monday, Litecoin price is being dragged another leg lower by market sentiment and is at a crucial level during the European trading session. Only the 200-day SMA is standing between bulls and the brink of implosion that would see LTC trading near $65, which is 20% lower.
Litecoin price sees bulls’ suffering not over yet
Litecoin price has plunged over the weekend as bulls tried relentlessly to push price action above the 55-day SMA. As they failed, each rejection was a window of opportunity for bears to enter and start overpowering bulls in the fragile equilibrium of demand and supply. Following a 10% drop over the weekend, LTC is finding some support near $81 at the monthly S1 support and the 200-day SMA as selling pressure is still ongoing.
Looking forward for LTC in light of the current sell-off in Bitcoin and other major pairs points to a further decline as support will soon snap. That would mean a very quick nosedive move with first the monthly S2 near $73 as an intermediary pause. Bears will instead want to go for $65, the low of December 2022, and erasing all incurred gains for 2023.
LTC/USD 4H-chart
A bounce from the trifecta of support could hold as the Relative Strength Index (RSI) is already trading in oversold territory. This pattern often then sees a slowdown in any further sell-off continuation. Expect a slight recovery, with LTC bulls clawing back to $86. A full return to $90 will take a few more trading days as trust has been bruised, and bulls need to lick their wounds first before going back in with large price-pushing purchases of Litecoin.
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