Crash

bullish

Litecoin

Challenge

<img decoding="async" width="1260" height="840" src="https://coingape.com/wp-content/uploads/2024/03/litecoin.jpg" class="attachment-full size-full wp-post-image" alt="Litecoin Price" style="float:right; margin:0 0 10px 10px;" srcset="https://coingape.com/wp-content/uploads/2024/03/litecoin.jpg 1260w, https://coingape.com/wp-content/uploads/2024/03/litecoin-300x200.jpg 300w, https://coingape.com/wp-content/uploads/2024/03/litecoin-1224x816.jpg 1224w, https://coingape.com/wp-content/uploads/2024/03/litecoin-768x512.jpg 768w, https://coingape.com/wp-content/uploads/2024/03/litecoin-150x100.jpg 150w, https://coingape.com/wp-content/uploads/2024/03/litecoin-272x182.jpg 272w" sizes="(max-width: 1260px) 100vw, 1260px">
Litecoin price jumped 1% to $63.7 during U.S. trading on Tuesday despite a general pullback in the crypto market. The bearish turnaround for most major altcoins showed a lack of momentum, indicating a temporary drop for buyers to stabilize from last week’s rally. However, the LTC price rebound could be linked to the sudden capitulation of short holders, a signal often interpreted as a potential recovery. 
<h2 id="litecoin-price-set-to-challenge-multi-year-support">Litecoin Price Set to Challenge Multi-Year Support</h2> 
The Litecoin price witnessed a steady correction for the past five months under the influence of a downsloping trendline. The bearish turnaround has tumbled the asset from $112.8 to $63— a 45% decrease, while the market cap plunges to $4.77 Billion. 
The overhead trendline and 50-day Exponential moving average provided dynamic resistance against LTC buyers, indicating a sell-on-rally sentiment intact. If the bearish momentum persists, the Litecoin price could plunge 20% to retest the support trendline of the <a href="https://coingape.com/glossary/symmetrical-triangle-pattern/">triangle pattern</a> that has been active since December 2018. 
The potential retest to lower the trendline would be pivotal for LTC holders. A bearish breakdown below this level will conclude a multi-year consolidation in the bears’ favor if sustained. This support breach would set the initiation <a href="https://coingape.com/price-predictions/litecoin-ltc-price-prediction/">Litecoin price prediction</a> target of $40, followed by $25. 
<figure style="width: 100%" class="wp-caption alignnone">
 <img decoding="async" src="https://s3.tradingview.com/snapshots/w/wHIGUC3q.png" alt="Litecoin Price" width="1814" height="755">
 <figcaption class="wp-caption-text">
 LTC/USDT -1d Chart
 </figcaption>
</figure> 
<h2 id="span-style-font-weight-400-ltc-price-eyes-stability-as-small-investors-exit-span">LTC Price Eyes Stability as Small Investors Exit</h2> 
The <a href="https://coingape.com/price/litecoin/">LTC price</a> has traded sideways for nearly two weeks, wavering around the $65 level. Despite the consolidation, the market witnessed a sudden liquidation event where 45.2K Litecoin wallets holding between 0.1 to 1 LTC have decreased, suggesting that smaller investors (small fish) are exiting their positions. 
However, the exit of smaller or speculative traders is often reflected as a shakeout, which attracts long-term investors. This transition is typically healthy for an asset to drive a stable recovery trend. 
<figure id="attachment_214334" aria-describedby="caption-attachment-214334" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-214334" src="https://coingape.com/wp-content/uploads/2024/08/Litecoin-LTC-01.35.35-28-Aug-2024.png" alt="LTC Price" width="3840" height="1300" srcset="https://coingape.com/wp-content/uploads/2024/08/Litecoin-LTC-01.35.35-28-Aug-2024.png 3840w, https://coingape.com/wp-content/uploads/2024/08/Litecoin-LTC-01.35.35-28-Aug-2024-300x102.png 300w, https://coingape.com/wp-content/uploads/2024/08/Litecoin-LTC-01.35.35-28-Aug-2024-1224x414.png 1224w, https://coingape.com/wp-content/uploads/2024/08/Litecoin-LTC-01.35.35-28-Aug-2024-768x260.png 768w, https://coingape.com/wp-content/uploads/2024/08/Litecoin-LTC-01.35.35-28-Aug-2024-1536x520.png 1536w, https://coingape.com/wp-content/uploads/2024/08/Litecoin-LTC-01.35.35-28-Aug-2024-2048x693.png 2048w, https://coingape.com/wp-content/uploads/2024/08/Litecoin-LTC-01.35.35-28-Aug-2024-150x51.png 150w" sizes="(max-width: 3840px) 100vw, 3840px">
 <figcaption id="caption-attachment-214334" class="wp-caption-text">
 LTC Supply Distribution | Santiment
 </figcaption>
</figure> 
Thus, the Litecoin price sparks a major reversal if the bottom support trendline holds. A bullish turnaround followed by a breakout from the overhead trendline will signal renewed bullish momentum and target a $80 high. 
The post <a href="https://coingape.com/markets/why-litecoin-price-may-crash-to-sub-50-levels/">Why Litecoin Price May Crash to Sub $50 Levels?</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Why Litecoin Price May Crash to Sub $50 Levels?

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