Litecoin bears ensured consistent efforts since the altcoin declined from the May last year's lifetime highs, closing beneath the range of $91 - $104 for almost a year. The alt's high correlation with BTC had LTC succumbing to market-wide liquidations within the past couple of months.
Meanwhile, the fall beneath $91 had Litecoin in intensified bearishness. A possible closing beneath the Pitchfork's upper trend-line might affirm a bearish pennant breakdown. Such a development would mean more declines for the token. While writing this content, LTC hovered at $63.51, losing 8.27% within the past 24 hours.
Litecoin Daily Chart
LTC's buying structure deteriorated after a massive fall from the resistance at $132 on March 31. The alternative token hasn't climbed beyond the mark since. Meanwhile, buyers' failure to safeguard the $91 - $98 range had LTC losing more than 51% towards the 18-month lows on May 12. The downward phase had the 38.2% and 50% FIB resistance standing to prevent any buying rally.
Meanwhile, the distance between the EMA 20 and the 50 Exponential Moving Average overextended to record highs. Buyers' comeback might experience challenges as the 20 Exponential Moving Average remains south.
Moreover, the Supertrend steeply appeared south, affirming the mentioned narrative. Keep in mind that the steep-looking biases often accompanied multiple bearish engulfing candles in the past.
Considering these indications, a significant decline beneath $63 would clear the gates to $50 in the up-and-coming sessions. Meanwhile, buyers might encounter problems halting bleeding as this range has fewer volumes. Nevertheless, investors should wait for a decisive closing beneath the Pitchfork's upper boundary for any possible short call.
Reasoning
The Relative Strength index failed to challenge the 40-level ceiling following several buying efforts to overcome the hurdle. The indicator's recovery from the support at 38 remains crucial to trigger buying tendencies in the short term.
Price recoveries from 59 might translate to a possible bullish divergence. However, the massive bearish stance by the DMI confirms challenges for bulls before regaining control over the market.
Final Thought
A decisive closing beneath the $59 - $63 territory would see the current pessimistic pennant breakdown securing more thrust. Such cases would have traders targeting to execute short calls and book profits around the $50 - $51 region.
However, Litecoin shares a 98% monthly correlation with BTC. LTC enthusiasts should watch Bitcoin's actions for profitable activities.
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