The world’s sixth-largest cryptocurrency, Litecoin, is in danger of a major corrective move to the downside as it continues to grind along the $55 level of support.
Litecoin’s latest fall from grace comes just a few months after the highly anticipated ‘halving’, which saw block rewards for miners slashed on August 5.
Since that date, Litecoin is now more than 49% down in price and 63% down from its yearly high of $146.
As the exponential moving average death cross draws closer for Bitcoin, it’s likely that Litecoin will follow its lead and slump further to the downside.
The next levels of support for Litecoin are at $50, $47, and $39.50, with the next level of resistance at around $60.
It’s worth noting that this time last year, Litecoin was on a perilous road towards a shocking $22 low as the majority of the cryptocurrency market capitulated.
A return to that level isn’t completely unimaginable as the current price action is reflecting the growing bearish sentiment throughout the markets.
This negative sentiment has been highlighted by Tether’s rise in popularity after it overtook Litecoin in terms of total market cap.
Increasing demand for Tether suggests that cryptocurrency traders and investors are beginning to seek a ‘safe’ haven in a USD-pegged stablecoin, despite the fact that Tether is currently under investigation by the NYAG.
For Litecoin to reverse into a bullish posture, it needs to break above the 200 EMA on the daily chart at around $71.
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