Short Term Low For Litecoin As It Breaks Below Parallel Channel

The Litecoin price has tanked further over the last 24 hours. On their respective charts, the prices of major altcoins reflect the price action of Bitcoin. As BTC slipped close to 3%, LTC also tanked nearly 8% on the daily chart.

Recovery for Litecoin seems far-fetched from what the technical outlook suggests. A rise in Bitcoin’s price may help LTC for a while, but the altcoin’s demand must rise in order for the price to reverse. The short-term price thesis for LTC points towards continued lower price action.

Since the coin has moved to a short-term low on its daily chart, the chance of a reversal cannot be fully negated either. For the past few weeks, the altcoin has been moving in a parallel channel, between $79 and $68 respectively. Investors had expected that LTC would break on the upside as BTC was attempting to register daily gains on its chart.

Despite Litecoin moving above the $70 price mark, demand was not on the side of the bulls. This could mean that demand was lower at higher levels for Litecoin. On the other hand, market capitalization noted a slight uptick, which could also hint at the coin attempting to turn its price around.

Litecoin Price Analysis: One-Day Chart

LTC was trading at $68 at press time. The altcoin got to this price level after falling through the lower line of the parallel channel. Its current resistance mark would be at $70, breaching which the coin might face another setback at $74.

As LTC continues to fall, the local support line for the altcoin was $66, falling through which LTC could halt at $56. This would cause the coin to lose another 15% of its value. The amount of Litecoin traded in the last session shot up, and that signified selling pressure intensifying on the chart.

Technical Analysis

As LTC broke below the lower band of the parallel channel, the buying strength could not sustain itself. The Relative Strength Index pierced through the half-line and stood near 40.

This indicated that sellers were countering buyers at press time. In accordance with the same, the price of the altcoin was below the 20-Simple Moving Average line. Moving below the 20-SMA meant that sellers were driving the price momentum in the market.

The altcoin depicted that sellers…