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.

Key takeaways

  • A price dip this week follows a longer term trend.
  • Some short trading seems to be following the 50 day SMA.
  • $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 $140 a week ago. Until Monday it held it’s price but it’s been slowly losing value before taking a big dip to around $117. It’s now settled in the low $120s.

Whether that small bounce will be sustained or not is a good question. The price has zig-zagged 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 the $370M/24hr mark at the moment after being closer to $300M/24hr earlier in the week, suggesting there’s quite a bit of activity going on.

Interestingly, if you line the Bitcoin and Litecoin plots for the last seven days up, the two graphs are almost indistinguishable other than the scales.

Analysts from CoinTelegraph say a value of between $107 and $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 upper most 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 $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.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators’ websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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