Litecoin price out of time as 20% implosion is a clear and present danger for LTC

Litecoin (LTC) price is still hungover from a brutal weekend where bulls dropped the ball on pushing price action above the important 55-day Simple Moving Average (SMA). With several important cryptocurrencies dropping on Monday, Litecoin price is being dragged another leg lower by market sentiment and is at a crucial level during the European trading session. Only the 200-day SMA is standing between bulls and the brink of implosion that would see LTC trading near $65, which is 20% lower.

Litecoin price sees bulls’ suffering not over yet

Litecoin price has plunged over the weekend as bulls tried relentlessly to push price action above the 55-day SMA. As they failed, each rejection was a window of opportunity for bears to enter and start overpowering bulls in the fragile equilibrium of demand and supply. Following a 10% drop over the weekend, LTC is finding some support near $81 at the monthly S1 support and the 200-day SMA as selling pressure is still ongoing.

Looking forward for LTC in light of the current sell-off in Bitcoin and other major pairs points to a further decline as support will soon snap. That would mean a very quick nosedive move with first the monthly S2 near $73 as an intermediary pause. Bears will instead want to go for $65, the low of December 2022, and erasing all incurred gains for 2023.

LTC/USD  4H-chart    

A bounce from the trifecta of support could hold as the Relative Strength Index (RSI) is already trading in oversold territory. This pattern often then sees a slowdown in any further sell-off continuation. Expect a slight recovery, with LTC bulls clawing back to $86. A full return to $90 will take a few more trading days as trust has been bruised, and bulls need to lick their wounds first before going back  in with large price-pushing  purchases of Litecoin.