Litecoin is Going to Zero as LTC Price Drops 10% in a Week While This New XRP Project Just Raised $1.3 Million – 100x Potential?
Litecoin has endured a month of bleak downside price action that has left LTC trading low, but could a consolidation zone poise price to explode? Find out in this Litecoin price analysis.
The collision course with lower trendline support was triggered by rejection from a local high at $115 on July 2, and a tumultuous -25% bleed-out followed.
With Litecoin trading low at a current price of $84 (a 24-hour change of +0.25%), bag holders are left fighting for life as 6-days of consolidation at lower trendline support appears to be attempting to push up.
Price action hasn't seen price levels this low since July, and while there are numerous historical bounces in this zone - all might not be over just yet.
In a significant loss to Litecoin technical structure, the critical loss of support from both the 20DMA and 200DMA during the catastrophic -12% downside move on August 2 could spell disaster.
Worse still, the 20DMA has plummeted below the 200DMA, forming a dreaded death cross pattern which adds a very bearish atmosphere to the chart.
The RSI provides some relief, having cooled-off significantly during the consolidation around $80, this key indicator is now reading at 39.5 - a strong oversold signal.
However, the MACD tempers this analysis, with bearish divergence at -0.67.
Despite the bleak technical structure, all is not over for Litecoin just yet, with a risk: reward profile reflecting the fact that LTC is in the bottom of its well-established trading channel.
To the upside, Litecoin is targeting a reclamation of solid footing above moving average support around $92.25 (+9.85%).
On the downside, risk is limited at a lower support zone around $75 (-10.6%).
This leaves Litecoin with a risk: reward profile of 0.92, a bad entry,
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