Litecoin Dips, Slides Lower In Top 10 Rankings
Litecoin currently sits at the 8th position on the crypto top-10 by market cap, with a total dollar market value of $1.8 billion, followed by TRON (TRX) with $1.6 billion. As most other coins, Litecoin is trading bearish, having lost almost 11% in the last 7 days and more than 3% in the last 24 hours. Due to a decline in popularity and confusion about the benefits of this coin, relative to the likes of Ripple, Bitcoin Cash, and now Bitcoin SV, it looks likely we’ll see Litecoin to continue to fall in the rankings.
In a recent message to the market Charlie Lee, found of Litecoin, argued that cryptocurrencies had to be vulnerable to a 51% attack else they’d be centralized, not de-centralized. The claim may be true but it does nothing to reassure owners and users of the system their money and value is safe.
Chart Analysis – LTC/USD
After two attempts to move above the key level at $40, Litecoin dropped like a stone and is currently trading around $30, testing a bullish trend line and approaching the support at $29. This support is not expected to hold and could lead to a serious decline in Litecoin’s value. If you are thinking about going long this token you may want to wait.
Given the bearish price action seen over the last few weeks, and the fact that price is trading below the 200 period Exponential Moving Average on a four hour chart, the chances of a break of 29 support are high. If this happens, we will likely see a touch of the next level, located at 27. For now volatility is relatively low but a break of support would probably change that, giving a clearer bias. The risk to this outlook is passage of US regulation which is not expected anytime soon.
Support zone: bullish trend line and 29 level
Resistance zone: 200 EMA (4 hour chart)
Most likely scenario: break of 29, en route to 27 – 25
Alternate scenario: choppy action between 29 and the 200 EMA