Litecoin (LTC) Unlikely to Win Battle to Break $100 After 15% Decline

Key Takeaways

• Litecoin’s price failed to retest the $100 mark in late March and is down 15% over the past month.
• The AO is in negative territory, signaling bearish momentum, while resistance levels at $78.17 remain unbroken.
• The  A/D line indicates fading buying pressure, suggesting that LTC could fall back into the descending channel.

Despite its attempt to retest $100 on March 27, Litecoin (LTC) failed to hit the mark. As a result, Litecoin’s price is down 15% within the past month.

As of this writing, the cryptocurrency’s value is below $75, which has historically been near LTC’s bottom.

However, signals from several indicators suggest that the altcoin might not see a quick rebound like it did on previous occasions. Here is why

Litecoin Struggles Continue Below $75

Litecoin’s technical structure shows a bearish outlook with the cryptocurrency failing to break key resistance levels. On the daily chart, CCN observed that the Awesome Oscillator (AO) is still in the negative region.

The AO is a technical oscillator that measures momentum by comparing historic price movement with recent ones. Negative readings of the AO indicate bearish momentum, while positive ones represent bullish momentum.

As of this writing, the AO on the LTC/USD daily chart stands at -7.50, indicating bearish momentum around the altcoin.

This position is also one reason Litecoin’s price has struggled to break the resistance at $78.17 and $94.04. Furthermore, the Accumulation/Distribution (A/D) line has hovered around the same point.

This indicates that buying pressure seems to have faded completely. If this trend continues, LTC’s market value could drop back into the price levels within the descending channel.

LTC Price Analysis: No Recovery Yet

Furthermore, other indicators on the same timeframe support this bearish outlook. For instance, the Relative Strength Index (RSI) has dropped to 38.43.

The RSI measures momentum by examining the speed and size of price changes. It also tells when an asset is overbought or oversold.

Readings above 70.00 indicate that the asset is overbought. Those below 30.00 mean that the asset is oversold.

Considering the RSI as of this writing, LTC momentum is bearish and nearing the oversold region. If this trend continues, Litecoin’s price might hit a lower value.

Another indicator that aligns with an extended decline is the Ichimoku Cloud. This indicates spot support and resistance.

When the cloud is above the price, it indicates resistance. However, when the cloud is below the price, it indicates support.

LTC’s current value is below the Ichimoku Cloud from the chart below. Should this trend remain the same, Litecoin’s price might experience a drop toward $63.24.

On the contrary, if buying pressure increases, the coin could rise above the $78.17 resistance. This could also lead to a breach of the $82.88 supply zone near the 0.236 Fibonacci level.

If that were to happen, LTC might experience an exponential rally to $95.18. If the market conditions greatly improve, Litecoin’s price might soar to $115.