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Today, Litecoin is losing its market gains as bears take control of its price. At press time, trading volume is down over 15% and the price is down 2.80% in the last 24 hours. This decline comes after major crypto assets such as Bitcoin and Ethereum took a hit and entered bearish territory.
After falling from $101.85 to $90.44 on April 19, 2023, the bears stepped up the pressure, bringing the price down to $81.11.
What’s next for Litecoin?
LTC is in a downtrend today, forming a bearish engulfing pattern on the daily charts, dropping to lower lows.
It fell below its 50-day Simple Moving Average (SMA) and is trading below its 200-day SMA with a bearish outlook in the short and long term.
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In addition, its Relative Strength Index (RSI) is at 34.74 and is rapidly declining to the oversold area of 30. This means that the bears are in control as more traders take short positions in the market. And the decrease in trading activity contributes to the current fall in prices.
Moving Average Convergence/Divergence (MACD) LTC is below the signal line and shows a negative value. This is bearish sentiment for the asset.
LTC support and resistance levels
LTC fell below $83.30, leading to speculation of further price cuts. The bears at the $88.26 resistance level resisted a potential upside breakout. Other critical resistance levels are at $90.99, roughly the psychological resistance of $100 and $100.20.
LTC is likely to build on support at $80.87 in the coming days and could drop to the next support at $78.85. All indicators are bearish and point to a decline. However, LTC could rise again if the $80.87 support becomes a pivot point for the uptrend.
Litecoin doubles hope for future rally in 2023
Litecoin is a cryptocurrency from the original Bitcoin protocol. The Litecoin halving is similar to Bitcoin, which is an event in which miner rewards are significantly reduced as a price control measure to increase scarcity and increase its value.
100 Days till the Litecoin Halving!
— Litecoin (@litecoin) April 24, 2023
Since its inception, LTC has held two halving events in 2015 and 2019. Block rewards were reduced from 50 LTC to 25 LTC in 2015 and from 25 LTC to 12.5 LTC in 2019.
LTC falls on a daily candle l LTCUSDT on Tradingview
The next halving is 86 days away and will reduce the miner block reward from 12.5 LTC to 6.25 LTC. The predicted halving date is August 3, 2023.
The daily Litecoin mining reward is 7,200 LTC per day, which is equivalent to 588,600 USD. In addition, its hashrate is 625.39 TH/s, which is still beneficial for miners.
The halving event happens every four years, like Bitcoin, and can cause prices to rise, although this is not guaranteed.
Featured image from Pixabay and chart from Tradingview.com
