Litecoin price weekly analysis 24 May: Looks like we are in a slump
Litecoin looks to be sliding as the market is in a significant lull.
- A price dip this week follows a longer term trend.
- Some short trading seems to be following the 50-day SMA.
- US$100 looks like a possibility unless something breaks the current cycle.
Litecoin has taken a beating this week, dropping US$20 from its price of around US$140 a week ago. Until Monday, it held its price but it has been slowly losing value before taking a big dip to around US$117. It has now settled in the low US$120s.
Whether that small bounce will be sustained is a good question. The price has zigzagged along today on a generally upward trajectory although short-term traders may have had an opportunity to make some gains as the price has fluctuated.
Trading volumes are up around US$370 million over a 24-hour period at the moment after being closer to US$300 million over a 24-hour period earlier in the week. This suggests there's quite a bit of activity going on.
Interestingly, if you line up the bitcoin and Litecoin plots for the last seven days, the two graphs are almost indistinguishable other than the scales.
Analysts from CoinTelegraph say a value of between US$107 and US$115 is where LTC will see strong support. And while the value of LTC saw some positive action from early April till mid-May, the overall trend since March has been downwards.
That gels with what FXStreet is seeing. Their trading wedge, which plots the highest and lowest prices on separate lines to see where the support levels lie, suggests there's still some room for LTC to fall. They're saying US$100 is a possibility.
CryptoGlobe's look at the hourly moves suggests there has been shorting going on, with some sales occurring as soon as the price hits the 50-day simple moving average (SMA). When the price hits that value, there's a sell off, driving the price down, before another small recovery back to the 50-day SMA and then another trade.
They note that both the 20- and 50-day SMAs are moving downwards.
Disclosure: At the time of writing, the author holds BTC, EOS, ETH, XLM, ETN, LTC, ADA and XRP.
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