|

Litecoin price targets $33 as UK Inflation report induces more sell-offs

  • LTC price weekly close hints at further decline.
  • Litecoin price displays the first breach of the weekly RSI since 2020.
  • Invalidation of the bearish thesis is a breach at $101. 

Litecoin price action is prepping for more decline as multiple indicators hint at newfound bearish power.

Litecoin price aims for $33

Litecoin price has printed a large bearish engulfing candle on the weekly chart. If market conditions persist, the Litecoin price could continue in a free-fall decline. Today the LTC price trades at $69, just below last week's settling price of $70. The lack of countertrend price action thus far could be due to a UK inflation report set to trigger long-term investors to trade in their digital assets for safer options.

Litecoin price provides confluence for a $30 target using a Fibonacci projection tool. The potential measured from the 2021 high at $416 projected into the 2021 lows at 103 presents a 161.8% Fib level in the $30 vicinity. The slope of the current sell-off also hints at a wave three price action. The Relative Strength Index has also recently breached the buyers' territory on the weekly chart for the first time since 2020. When combined, the bears appear to be prepping for a monstrous downslide.

TM/LTC/5.15.22

LTC/USDT 1-Day Chart

Invalidation of the bearish thesis remains at $101. If the bulls can breach $101, the $130 zone could be an excellent countertrend target, resulting in a 88% increase from the current Litecoin price.

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

More from Tony M.
Share:

Editor's Picks

Ripple Price Forecast: Sellers retain control as Evernorth Holdings files with SEC to buy more XRP

Ripple’s (XRP) correction on Monday is deepening below $1.30, reflecting growing headwinds in the broader cryptocurrency market. Based on the token’s technical picture, the path of least resistance could stay downward until the $1.30 supply area flips into support.

Bitcoin stalls around $80,000 as geopolitical tensions dampen risk appetite

Bitcoin hovers around $80,500 on Monday after three straight weeks of correction. Rising geopolitical tensions in the Middle East continue to push oil prices higher, stoking inflation concerns and dampening risk appetite.

Crypto Today: Bitcoin, Ethereum and XRP extend losing streak as bearish momentum builds

Cryptocurrency prices are broadly correcting on Monday, led by Bitcoin’s five-day sell-off. Ethereum edges lower and trades around $2,325, as sellers build momentum to retain control over the trend. Meanwhile, Ripple shows signs of consolidating.

Pi Network Forecast: PI token remains under bearish pressure despite network access and security upgrade

Pi Network trades around $0.075 on Monday, holding steady after two consecutive days of roughly 2% losses, resulting in the lowest weekly close ever. Pi Network rolled out desktop version 0.6.4 on Thursday, focused on improving remote access and security for local AI apps.

Bitcoin extends pullback as ETF inflows clash with risk-off sentiment

Bitcoin remains under pressure, trading around $81,800 on Friday, recording modest losses so far this week. Despite a mild pullback, institutional demand showed signs of a comeback with spot Exchange Traded Funds recording $442.67 million in net inflows through Thursday.