2024

Litecoin

<ul>
 <li><em>LTC formed a bearish flag at press time, indicating further nosedive despite the recent plunge.</em></li>
 <li><em>Long-term holders were liquidating their positions.</em></li>
</ul>
<p><a href="https://ambcrypto.com/search/litecoin" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Litecoin [LTC]</a> was one of the top cryptocurrencies hit hard by the market crash on the 3rd of December. This was because it lost 11.17% of its value, according to data from CoinMarketCap.</p>
<p>Though market prices have started to recover, it might not be the same for LTC.</p>
<p>Analyst Ali Martinez put out this prediction. According to Martinez, LTC was facing intense selling pressure. This sell-off was one of the reasons the price nosedived from $72 to $65 at press time.</p>
<p>However, that might not be the end of a torrid season for Litecoin, Martinez opined.</p>
<p>In his post on X (formerly Twitter), the analyst shared a 3-day chart that showed LTC forming a bear flag. As a result of the formation, Martinez noted that the coin might sink to $38.</p>
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <p lang="en" dir="ltr">Post-recent dip, the outlook for <a href="https://twitter.com/hashtag/Litecoin?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">#Litecoin</a> appears challenging. If the selling pressure continues, <a href="https://twitter.com/search?q=%24LTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">$LTC</a> might see a push down to $38, potentially confirming a bear flag formation. <a href="https://t.co/Y21U6eR5tw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/Y21U6eR5tw</a></p>
 <p>— Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1742558181375496619?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">January 3, 2024</a></p>
</blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<h4>Can’t find any trace of bulls in the picture</h4>
<p>Sinking to $38 would mean that LTC would lose 1.71x its press time value.&nbsp; However, the prediction would only come to pass if sellers continue to push the price action further.</p>
<p>If this happens, Litecoin’s candlestick pattern might <a href="https://ambcrypto.com/litecoin-what-ltc-investors-need-to-know-as-we-step-into-2024/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">extend</a> downward while confirming the bearish flag formation.</p>
<p>The projection was also validated by the Hodler Net Position Change. The metric shows the monthly position change of long-term investors. When Litecoin HODLers accumulate a new position, the <a href="https://studio.glassnode.com/metrics?a=LTC&amp;category=Long%2FShort%20Term&amp;m=indicators.HodlerNetPositionChange&amp;s=1699225200&amp;u=1704322799&amp;zoom=" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">net change</a> is positive.</p>
<p>According to AMBCrypto’s analysis of the metric, the net change flipped negative on the 28th of December 2023.&nbsp; It has remained the same since then. This drop indicated that Litecoin HODLers were cashing out instead of accumulating.</p>
<div id="attachment_362051" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/glassnode-studio_litecoin-hodler-net-position-change-ltc-2.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-362051" decoding="async" class="size-full wp-image-362051" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/glassnode-studio_litecoin-hodler-net-position-change-ltc-2.png" alt="Litecoin Hodler net position change in January 2024" width="1800" height="1013" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/glassnode-studio_litecoin-hodler-net-position-change-ltc-2.png 1800w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/glassnode-studio_litecoin-hodler-net-position-change-ltc-2-300x169.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/glassnode-studio_litecoin-hodler-net-position-change-ltc-2-1024x576.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/glassnode-studio_litecoin-hodler-net-position-change-ltc-2-768x432.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/glassnode-studio_litecoin-hodler-net-position-change-ltc-2-1536x864.png 1536w" sizes="(max-width: 1800px) 100vw, 1800px"></a>
 <p id="caption-attachment-362051" class="wp-caption-text">Source: Glassnode</p>
</div>
<p>Besides on-chain data, AMBCrypto went ahead to evaluate LTC’s technical state. At press time, the sharp fall indicated by the red candlestick confirmed the severe selling pressure.</p>
<h4>LTC remains the fall guy</h4>
<p>A look at the MACD also indicated that momentum was bearish. Signals from the MACD validated the thesis because the 12-day EMA (blue) had crossed below the 26-day EMA (orange).</p>
<p>This position suggested that LTC would keep oscillating downwards. Furthermore, the 50 EMA (yellow) had formed a death cross over the 20 EMA (cyan). This buttresses the point that LTC was <a href="https://ambcrypto.com/litecoin-sheds-value-despite-high-activity-heres-why/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">headed</a> downwards.</p>
<p>But what are the next targets for Litecoin? According to the 0.236 Fibonacci retracement, LTC might drop to $63.72 within a short time.</p>
<div id="attachment_362056" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/LTCUSD_2024-01-04_11-08-08.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-362056" decoding="async" class="size-full wp-image-362056" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/LTCUSD_2024-01-04_11-08-08.png" alt="Litecoin price analysis on the 4-hour timeframe" width="1154" height="721" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/LTCUSD_2024-01-04_11-08-08.png 1154w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/LTCUSD_2024-01-04_11-08-08-300x187.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/LTCUSD_2024-01-04_11-08-08-1024x640.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/LTCUSD_2024-01-04_11-08-08-768x480.png 768w" sizes="(max-width: 1154px) 100vw, 1154px"></a>
 <p id="caption-attachment-362056" class="wp-caption-text">Source: TradingView</p>
</div>
<p style="text-align: center;">Is your portfolio green? Check out the <a href="https://ambcrypto.com/calculator/litecoin-profit-calculator" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">LTC Profit Calculator</a></p>
<p>However it seems that traders are not yet giving up on Litecoin. AMBCrypto drew this <a href="https://app.santiment.net/charts/GbLiM_W2__sCl" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">inference</a> from the Funding Rate, which was 0.01% at press time.</p>
<p>This positive reading suggests that there are more traders with bullish convictions, than those on the bearish side.</p>

Rough patch for Litecoin? Predictions suggest another price plunge

AMBCrypto

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