It only gets better for the short sellers! In my yesterday’s analysis, Fall from Grace, I had mentioned that the decline may worsen to $1.590, and Litecoin has touched $1.562 since the previous observation. The cryptocurrency has now dropped to a crucial level, below which I expect a rapid decline in the market cap.
Litecoin is currently trading down 2.2% at $1.633.
Things look extremely worrisome for the Litecoin bulls on the 240-minute LTC/USD price chart, conveying that market participants should consider it only as a sell on rise candidate.
Litecoin Chart Structure – Litecoin’s drop briefly pushed it below the trendline drawn from the previous two peaks (the horizontal blue line in the chart above) but closed above it. The near-term support level is now $1.594 while the level of $1.690 will prove to be a pressure point.
Fibonacci Retracement – Crucial Fibonacci support levels continue to get challenged and breached. After breaking the 61.8% Fibonacci retracement level, bulls tried to recoup the losses but instead, they failed miserably