Can the price of Litecoin fall to $76 after a 22% drop?

In the context of the market undergoing a crisis, the price of Litecoin (LTC) has fallen sharply by 22%, as of now, wiping out all the profits that this coin had achieved in the past two days.

The hope of breaking through the important resistance level at 143 USD has also weakened with this falling trend.

LTC price falls 22% amidst market turmoil

According to data from Coinphoton, the price of LTC is currently trading around 98.90 USD, recording a significant fall of 22% over the past 24 hours. Previously, this asset had shown strength near the level of 134.40 USD, but the market collapse pulled the price down to 84.79 USD before a partial recovery.

This sharp decline, combined with the inability to successfully break through the important resistance level, has stimulated trading activity among investors and traders. Trading volume has surged over 125%, reaching 3.95 billion USD.

On-chain indicators signal potential reversal

In the context of weak market sentiment, investors and traders seem to be taking advantage of this opportunity to accumulate assets and strongly bet on long-term positions. The inflow/outflow indicators of LTC from CoinGlass show that exchanges have recorded a significant outflow of 10.58 million USD in the past 24 hours, indicating potential accumulation capability.

Source: CoinGlassSimilarly, traders are also pursuing this trend. The liquidation map on the exchange indicates that the main liquidation levels for LTC are at $97.7 below and $100.5 above. At these levels, traders have built long positions worth $2.02 million and short positions worth $1.71 million.

Source: CoinGlassThis shows strong confidence among traders regarding the potential for price increases, although the overall sentiment remains weak, making recovery difficult.

Litecoin price trends and future predictions

On the weekly chart, technical analysis from Coinphoton shows that LTC has returned to a sideways parallel channel pattern that it has been following since February 2022. On the daily chart, LTC has closed below the important support level of 102.80 USD, signaling the possibility of further decline. If the price cannot regain the level of 105 USD in the near future, analysts warn that it could fall an additional 20%, potentially down to 76 USD in the coming days.

Source: TradingViewAt the time of writing, the Relative Strength Index (RSI) of LTC is at 36, indicating that the asset is nearing the oversold territory. However, the strong bearish momentum may continue to pressure the price in the short term.

Despite this bearish outlook, an expert in the cryptocurrency field has made a bold prediction. In a post on X, they shared a chart showing that LTC is nearing a breakout from the symmetrical triangle pattern on the weekly chart. The post describes LTC as the "sleeping giant" and predicts a long-term target of 750 USD.

Source: X/CryptoFaibik

Mr. Teacher