- Litecoin price pressures remain heavily tilted to the downside, which has been the case since late June.
- LTC/USD has dropped over 40% in the last six weeks, with a lack of slowdown signs in sight.
LTC/USD: Recent Price Behavior
The Litecoin price is stuck within a strong downside trend without any indications that this is going to change course just yet. LTC/USD has dropped some 40% in the last six weeks. The bear market picked up much pace in late June after the price ran into a significant supply zone. Litecoin did manage to see the highest price since May 2018, before being hit by large sellers.
A bearish weekly candle closure was seen for the week of 17-24 June – a textbook evening star formation. The pressure south further resumed in the weeks following, as earlier noted leading to substantial losses. Litecoin recently gave up the gains that were accumulated over the May-June period. During the noted advance, LTC/USD had rallied from a low of $70 to heights of $146.
The price notably dropped like a stone following a critical ascending trend line breach. It had been supporting the price to the upside from the very start of May. LTC, with its guidance, enjoyed seven consecutive weeks of straight gains before the bulls lost steam.
2019 Recovery at Risk
Given the above-described bearish momentum, Litecoin is at risk of giving back all of the 2019 price recovery. At the beginning of the year, LTC/USD was trading down at $22 after facing such a grueling beating in 2018. The price fell some 90% from the $300 area.
Litecoin on the push higher from the get-go of 2019 had rallied some 440% in what was an extremely promising recovery. The move north was very consecutive and gaining much pace in such a short period. It was the best run higher seen since the late 2017 bull run, where the price went on to produce the all-time highs.
The current downside rate does make it increasingly possible for a full reversal of the advance. LTC/USD could very well be just two barriers away from seeing that retreat, as critical demand is seen from $87 down to $77. The next support area is seen at a range of $65 to $55, where the price traded ahead of the described May-June bull run.
A bearish pennant structure can be seen via the daily chart view; it does make the price subject to further downside pressure. Should the bears force a breach, another wave of selling will very well come into play. A short position is attractive here, ahead of any further buying to come. The downside target range would be $65-$55, and stops would be placed just above the pennant, $107.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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