Litecoin price analysis: bears push LTC/USD towards $50.00 as the market chooses to ignore fundamentals
|- LTC/USD is controlled by bears again, $50.00 within reach.
- Muted reaction to Gemini listing speaks volumes.
Litecoin, the 7th largest digital asset with market value $3B, is changing hands at $51.58, down 7.5% on a daily basis and nearly 1% since the beginning of Tuesday. The coin's average daily trading volumes are set at $284M, which corresponds to the longer-term average. Litecoin is sliding together with other altcoins amid bearish sentiments settled on the cryptocurrency markets. The movements are dominated by speculative positioning and technical factors.
Litecoin's technical picture
Looking technically, Litecoin needs to stay above $50.00 to avoid more pronounced sell-off towards the recent low registered at $47.21 on September 12. This psychologically important area is likely to stop the downside and attract new short-term buyers, creating an environment for rangebound trading.
On the upside, the first resistance is seen at $54.20 (SMA200, 1-hour chart), followed by $54.85 (SMA50, 1-hour chart) and a pivotal $55.00. Once this area is cleared, the recovery may be extended towards ultimate short-term goal at $60.00.
New-Yorked based cryptocurrency exchange announced LTC support, however, the crypto community just yawned in response. That's the case when no reaction is as telling as a strong movement. In the past, such listing news was regarded as a massive bullish signal and caused strong rally as it meant more adoption, more widespread use and so on.
But now the reaction is muted or short-lived at best, which might mean that the cryptocurrency market is moving farther from fundamentals - however few they are - controlled entirely by speculative flows.
LTC/USD, 1-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.