Tanya Abrosimova
Independent Analyst
- Traders sell LTC/USD amid widespread cryptocurrency backlash.
- A sustained break below $130.00 clears the way to $105.31.
Litecoin is dropping like a stone again, having broken below local support at $130.00. The coin lost over 4% of its value within an hour on the combination of technical and speculative factors. The decline is accompanied by the spike of both trading volume and volatility, which may signal more trouble ahead for Litecoin.
While Litecoin is still plagued by LitePay cessation news, there are no new fundamental factors that might have triggered the sell-off, the coin is pressured down by general bearish sentiments gripped over the cryptocurrency market. All major digital assets are in red after a short period of consolidation during early Asian hours. BTC/USD broke below Wednesday's low to test $7,600 handle, XRP/USD is down 4% on the day, at $0.5450, while ETH/USD crashed to $420.00.
Meanwhile, the recent findings of Recorded Future show that Litecoin has become the second popular cryptocurrency in Dark Web. Currently, about 30% of the sellers with alternative payment options accept Litecoin, sighting that BTC transactions became too costly and too slow. Speed is essential for any financial transaction especially in Dark Web where people do not trust each other. In this context, 30-minute Litecoin transaction clearance compares favorably to 80-minute BTC transaction time.
Litecoin price technical picture
LTC/USD recovery attempts failed to materialize. The price touched $125.00 ahead of European opening. Currently, LTC/USD is trading at $126.00. The immediate recovery target at $130.00 needs to be taken out to reduce the selling pressure. The next hurdle comes at $136.65 (50-SMA, hourly interval) On the downside, February 6 low at $105.31 comes into view as few technical levels can stop the decline.
LTC/USD, the daily chart
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