Litecoin rally fades as Bitcoin reaches $30,000
Litecoin (LTC) has again reached $140 minimums after reaching its highest price level in over a year of $174
The price of Litecoin reached a new high of 52 weeks, around $174, during the beginning of today’s Asian trading session. The bullish trend saw Litecoin briefly overtake Ripple (XRP) as the largest public blockchain project in market value.
However, the march to annual highs for the LTC/USD pair has slowed and the downside is coming at the same time as Bitcoin (BTC) retreats from highs of $34,800.
The price of BTC is currently hovering around $30,500 amid an increase in profit reserves. Litecoin is also struggling with increased selling pressure, as bears appear to be about to take advantage of exhaustion among bulls to push prices down.
At the time of writing, Litecoin was trading around $150, about 5% higher on the day and almost 14% on the green during the week. But the LTC/USD pair remains nearly 59% off the ATH, in stark contrast to Bitcoin, which broke its own record several times since breaking the $20,000 barrier.
Although Litecoin can still look at the psychological level of $200, the outlook at the moment suggests a downward movement or descent into an extended consolidation phase.
Litecoin’s Price Perspective
Litecoin had traded in a largely lateral trajectory in the last few weeks, but cryptomeda seemed to come alive in the Christmas and New Year period.
The narrow channel break that had limited prices around $120 – $135 saw the bulls breaking through the $150 barrier on their way to testing resistance at $174.
But the bullish momentum seems to have diminished in the last few hours, with prices falling sharply to lows of $140. Litecoin’s bulls are battling sellers around $147 at the time of writing, with the 4-hour chart suggesting that the LTC/USD pair may fall to 50-SMA if the bears manage to break below the $140 support level.
The MACD indicator remains in a bullish zone, but is showing declining interest from the bulls. A similar negative outlook is suggested by the RSI which is descending towards the mid point. If technical indicators continue on this trajectory, the LTC/USD currency pair is likely to have support around $125.
On the hourly chart, the price remains above 100-SMA ($136), but a series of higher highs and lower lows suggest that the bullish trend is broken. The hourly MACD has formed a bearish cross and the RSI is dropping below the mid point.
Strengthening these indicators in the direction they currently point would signal a further drop. Litecoin’s value against the US dollar could therefore fall to the critical $100 level.