All cryptocurrencies are struggling right now. Given the current battle for control in the Bitcoin markets, that is no big surprise. Things are looking a bit bleak for the Litecoin price right now, even though the overall uptrend is still intact. With a value of under US$55, a week-long downward trend is looking to hit critical support.
LITECOIN PRICE KEEPS GOING LOWER
Every time the Bitcoin price reaches a new all-time high, altcoins will struggle for a few days. When that all-time high is followed by a correction, altcoins will struggle even more. Right now, the whole world is waiting for the Bitcoin price to stabilize a bit before altcoins can even start to recover. This is weighing down the Litecoin price right now, as its value has dropped continuously over the past week.
To be more specific, one week ago, the Litecoin price was hovering around the US$65 mark. At the time, it seemed a rise to US$70 or potentially higher was only a matter of time. It is still possible we will see such a price point before the year is over, but for now, breaking this bearish trend is virtually impossible.
Ever since the Litecoin price hit US$65 a week ago, its value has been rolling down a slippery slope. The US$55 low was reached two days later, after which point the Litecoin price rebounded swiftly. After a few days of consolidation at US$60, the price eventually started slipping again and is now below US$55. Predicting a critical level of support is up to people well-versed in technical analysis, but US$50 isn’t an unreasonable target.
Moreover, the Litecoin trading volume has cooled off quite a bit over the past seven days. US$104 million in 24-hour volume doesn’t look promising in the least. That doesn’t mean the market will continue declining indefinitely, but it is certainly possible there will be a bit more bearish momentum before things head in the right direction again.
Most of the trading volume for Litecoin originates on GDAX, which is somewhat surprising. Bithumb is a close second, and Bitfinex closes out the top three. OKCoin is still in fourth place, followed by HitBTC. OKCoin is trading Litecoin at well below the market average right now, which may hint at the US$50 buy zone we alluded to a few paragraphs above. It will be interesting to see how these fiat currency trading pairs affect the Litecoin price in the coming hours and days.
Looking at the bigger picture, Litecoin has still been pretty bullish throughout 2017. This currency was valued at well below US$4 until late March, and a lot of gains have been made since. While some people would love to see a new all-time high for Litecoin this year, it remains to be seen if that is feasible. There are some interesting projects in development as we speak, though.