Litecoin Price Prediction: LTC whales are selling in anticipation of a downswing to $150


  • Litecoin price hinting steep correction as TD Sequential indicator presented sell signal for 5th time in last five months.
  • Supporting the bearish thesis are declining whale holdings, which increase the probability of a downswing.
  • An upswing could come into the picture if LTC bulls manage to push past the recent high at $230.

Litecoin price has seen a 20% correction after hitting a local top on February 14. This correction shows signs of an extension as both technical and on-chain indicators have turned bearish.

Litecoin price primed for a downswing

Litecoin price saw a 100% impulse wave after bottoming on January 27. Now, the local top on February 14, signals the end of this rally.

On February 16, the Tom DeMark (TD) Sequential indicator flashed the fifth sell signal in the form of a green nine candlestick since October 2020.

Since this technical formation forecasts a one-to-four candlestick correction, previous sell signals have resulted in a 20-to-40% correction.

Hence, investors must assume that the recent bearish indication might follow through.

LTC/USDT 1-day chart

LTC/USDT 1-day chart

Adding credence to Litecoin’s bearish thesis is the declining number of whales holding between 10,000 to 100,000 LTC. 

These whales have reduced from 420 to 415 between February 15 and 17 thus painting investors’ pessimistic outlook of Litecoin’s bullish potential.

Litecoin holder distribution chart

Litecoin holder distribution chart

Litecoin’s downswing could extend up to the critical support at $150, which is a 30% drop from its current price.

Based on IntoTheBlock’s Global In/Out of the Money model, about 247,000 addresses purchased nearly 4.45 million LTC here.

Subsequent selling pressure leading to a breakdown of this support could trigger a sell-off pushing the altcoin to $130.

Litecoin GIOM Chart

Litecoin GIOM Chart

While the bearish scenario seems likely and inevitable, it could be invalidated if LTC bulls manage to get a daily close above the recent high at $230.

If this were to happen, retail FOMO could push the coin up to $350 or the 161.8% Fibonacci level.

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

GRT risks freefall under $1 amid broad-based crypto declines

The Graph is teetering at $1.73 after its uptrend ran into a barrier around $2.9. Declines have been consistent within the confines of a descending parallel channel. Losing the middle boundary support has left GRT bears with open-air to explore.

More Graph News

LINK bulls flee as broadening wedge pattern hints at a 50% drop

Chainlink price nears the end of an ascending broadening wedge pattern that forecasts a 50% drop. Transactional data shows that $17.8 could be an inflection point. If LINK price slices through this support, then a drop to $13 seems likely.

More Chainlink News

XLM poised for massive 27% breakdown, as the technical picture worsens

Stellar has recently been rejected from the yearly high of $0.61. Bulls tried their best to secure higher support but failed in that task. XLM continues with the breakdown below a descending trendline that seems to have confirmed a triangle pattern on the 4-hour chart. 

More Stellar Lumens News

DOGE in trouble as multiple technical indicators scream sell

Dogecoin price hints at a 75% upswing as the bull flag pattern develops. A decisive close above $0.058 would indicate a start of a bullish breakout. Mounting selling pressure could invalidate crucial support at $0.047 and push it down by 20% to $0.037.

More Dogecoin News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: BTC journey to $100,000 might be easier than expected

This past week has been extremely beneficial for Bitcoin which jumped by 30% since Monday 8. Several positive announcements, especially Tesla purchasing $1.5 billion worth of the digital asset propelled the flagship cryptocurrency to new highs.

Read the weekly forecast

BTC

ETH

XRP