For litecoin (LTC), the first half of the year has been a tumultuous one, but the price of the No. 6 cryptocurrency by market cap has largely mirrored that of bitcoin (BTC). Like the leading digital token, LTC climbed up above $100 in early December 2017, reaching stratospheric peaks of about $250 before the end of the year. In the time since, LTC has also followed in the footsteps of bitcoin (BTC), falling back down to pre-peak levels. The entirety of 2018 up to this point has seen the value of LTC above $100. Now, though, analysts are questioning whether litecoin may plunge back down below this important threshold.
LTC Drops Below $120 and $115 Supports
A report by Ethereum World News notes that LTC has recently declined by a significant margin, dropping below crucial support levels of $120 and $115 against the U.S. dollar. Additionally, there is a newly established bearish trendline forming, indicating resistance at $110.
The report notes that the price of LTC is currently correcting higher, trading close to the 23.6% Fibonacci retracement level from the last decline as of early this week. Nonetheless, there remain barriers on the upside for buyers near the level of $108.
On the downside, LTC’s recent low of $102 marks a short-term support. If the price breaks below that level, it could open the doors for a push down below $100, with the next significant support sitting close to $95.
LTC’s recovery is exacerbated by the fact that the overall cryptocurrency market remains bearish. Indeed, many of the leading digital currencies have fallen significantly in the past several days.
Importance of Psychological Barrier
Should LTC drop below $100, it may also have important psychological effects on investors. Such a decline might prompt further negative feelings about the digital currency. As of this writing, the market cap of litecoin is hovering just below $6 billion, with 24-hour trading volume of just $405 million. This volume is only about 1/14th the trading volume of bitcoin over the same time period and is more in keeping with the volume of ripple, the third-largest digital currency. Still, litecoin has seen a smaller percentage decline over the past 24 hours than ripple, bitcoin cash or EOS, all of which remain positioned above it at this time.