For the past two months, Litecoin’s (LTC) price has been stuck attempting to initiate recovery, with every effort failing consistently.
To worsen the situation, the whales are also taking a step back, which could lead to further suffering for altcoins.
Litecoin Investors Step Back
Litecoin’s price is suffering from investors’ uncertainty as the broader marker cues continue to exhibit mixed signals. The first of these comes from Litecoin’s Average Directional Index (ADX).
This indicator, which measures the strength of a trend, has been signaling a decline in momentum, which is currently showing that the uptrend is losing strength.
Despite this, it’s important to note that the ADX remains above the critical threshold of 25.0. This level is significant because it generally indicates a strong trend is still in place, even if it’s not as strong as before.
Read More: How To Buy Litecoin (LTC) and Everything You Need To Know
As long as the ADX stays above 25.0, Litecoin can rebound. However, this would require the support of LTC investors, who are also currently weak.
Litecoin’s whales have been the most bearish participants over the last couple of weeks. The large wallet holders have been holding back, evidence of which can be seen in the volume generated through their transactions.
The volume of transactions worth more than $100,000 has declined from $3.4 billion to $2.6 billion over the past month. This shows that the whales are skeptical of a rally and are holding back to prevent further losses.
LTC Price Prediction: Breaking the Barrier
For the past two months, Litecoin’s price has been moving under a downtrend line, failing to breach it for the third time. This downtrend has pulled the altcoin down from $90 to $71 at the time of writing.
If this downtrend remains unbreached and the aforementioned factors affect Litecoin’s price bearishly, further decline is likely. LTC could fall to $69 or lower, potentially hitting a low of $61.
Read More: Litecoin (LTC) Price Prediction 2024/2025/2030
On the other hand, the crypto asset is still above the 23.6% Fibonacci Retracement. This line is also known as the bear market support floor and tends to prevent excessive drawdowns during bearish moments.
This could boost LTC to breach the downtrend and push towards $80, flipping which into support will invalidate the bearish thesis.
Disclaimer
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