Litecoin has recently experienced a significant downturn, with its market value plummeting by 36% since peaking on April 1st, as highlighted by Santiment, an analytic firm. This steep decline has led to a notable shift in the behavior of small investors.
In a dramatic turn of events, 45,200 wallets, each holding between 0.1 to 1 LTC, were suddenly liquidated. This mass exit by small traders often signals a potential reversal in market trends.
Litecoin stands at $63.46 at press time, marking a 1.37% drop over the past 24 hours. The price action has revealed a distinct trading range, with recent price movements bouncing around $63.00, which serves as a short-term support level. A deeper look shows that the asset also has a potential support of around $62.50, where it has previously found a floor.
Conversely, resistance is observed in the $64.00 to $64.50 range. The price has struggled to maintain levels above this threshold, suggesting it is a significant barrier. If the price continues to falter and breaks the $63.00 support, further declines toward $62.50 or even lower could be anticipated.
Litecoin ($LTC) Sees Bullish Surge With 704K New Addresses and Positive RSI
Moreover, if Litecoin manages to rebound and break through the $64.50 resistance, it could indicate a shift toward a bullish trend. The recent price action reflects a range-bound scenario, with bears currently dominating due to the inability to sustain above key resistance levels.
The technical indicators further reflect the bearish sentiment. The 1-week Relative Strength Index (RSI) for Litecoin is at 41.85, edging closer to the oversold zone. This suggests the asset may be nearing a potential turnaround if buying pressure increases. Additionally, the 1-week Moving Average Convergence Divergence (MACD) is trading below its signal line, reinforcing the bearish momentum in the short term.
