Litecoin Nears Annual Low: Potential Rebound or Further Descent?

23 jun

Litecoin Nears Annual Low: Potential Rebound or Further Descent?
Litecoin price was trading close to $74.28, recording a slight intraday loss of 0.44%.
The weighted sentiment curve has dropped below the zero line indicating the bearish dominance in the crypto.

Litecoin price has been in a short term declining trend after the breakdown of the psychological $80 level. The price has retraced the annual lows and might be at the risk of falling lower if resumes with the ongoing short term trend.

Moreover, there has been a notable shift in the weighted sentiment curve in the recent sessions. At the time of writing, the LTC crypto was hovering close to $74. recording a swift intraday loss of 0.4%.

Litecoin is the 20th largest cryptocurrency with a live market capitalization of $5.54 Billion. It has a daily transaction volume of nearly $176.37 Million. Out of 84 Million LTC tokens, 74.67 Million tokens are presently in circulation.
Weighted Sentiments Curve Indicates Selling Continuation.
The Litecoin price dropped sharply in the recent sessions after the breakdown of the recent support of $80. The breakdown of the support level turned the weighted sentiment curve towards the bearish side.

<iframe title="Santiment Chart: Negative sentiment (Total) (LTC), Positive sentiment (Total) (LTC), Weighted sentiment (Total) (LTC)" width="1170" height="425" src="embed.santiment.net/chart?ps=litecoin&pt=LTC&df=2024-03-18T18:30:01.905Z&dt=2024-06-19T18:29:59.905Z&emcg=1&wm=sentiment_negative_total;sentiment_positive_total;sentiment_volume_consumed_total&wax=0;1;2&wc=#FF5B5B;#FFCB47;#5275FF&ws={"interval":"1d"};{"interval":"1d"};{"interval":"1d"}" scrolling="no"></iframe>

The above data displays the change in positive, negative, and overall weighted sentiments regarding LTC crypto. As per the data, the positive sentiments dropped thus tuning the weighted sentiments curve below the zero line in the bearish zone.

The weighted sentiment curve reveals the current bias about LTC whether it is bullish or bearish. A positive sentiment dominates until the weighted sentiment curve is maintained above the zero line and vice versa.
What's Next For Litecoin?
From a technical point of view, the Litecoin price has dropped below all the key exponential moving averages of 20, 50 and 200 days indicating a bearish outlook in the short term as well as long term.

Now, until the price is maintained below the key EMAs of 50 and 200 days, it might be a sell on rise opportunity for the short term traders and investors. The price needs to surpass the $80 level in order to reclaim the bullish territory.

At the time of writing, the RSI line was placed at 36.73 and that of the 14 day SMA line was at 37.37 points. Both the lines were placed below the mean line indicating bearishness in the trend.

Conclusion.
Litecoin (LTC) is facing a bearish trend, having fallen below the crucial $80 level. At the time of writing, LTC was trading around $74 with a modest intraday loss of 0.4%. The market sentiment has shifted negatively, with a decrease in positive sentiments. It ranks as the 20th largest cryptocurrency, with a market cap of $5.54 billion and 74.67 million tokens in circulation.

From a technical aspect, LTC price is below the 20, 50, and 200-day exponential moving averages, suggesting a bearish outlook for both short and long term. The RSI and 14-day SMA are below the midpoint, reinforcing the bearish sentiment. The price must break above $80 to turn bullish again.