Litecoin (LTC) is trading around $66.60 on Monday, showing signs of potential weakness after failing to maintain support above an ascending trendline that dates back to early August. With technical and on-chain indicators turning bearish, LTC could be in for a steeper decline if support levels aren’t reclaimed. Here’s a closer look at why LTC may face headwinds in the coming days.
Breaking Down Litecoin’s Price Action
LTC’s price broke below a key ascending trendline over the weekend, signaling a shift in its uptrend. This breakdown followed a rejection at the 200-day Exponential Moving Average (EMA), a critical resistance level LTC had failed to surpass at $70.63 last week. This rejection adds pressure to Litecoin’s price, now trading 11% lower, putting the August 27 low of $59 on the radar if the trendline break holds.
The Relative Strength Index (RSI) also reflects the bearish sentiment, reading at 43 and trending downward. With the RSI below the neutral 50 level, the indicator hints at increasing selling momentum and declining buying interest, supporting the possibility of further downside.
On-Chain Metrics Reveal Bearish Signs
On-chain analysis provides additional evidence of potential weakness for LTC. Santiment’s Age Consumed index – which tracks the movement of dormant tokens – recently spiked, suggesting that long-held tokens are being moved. Historically, such spikes have been associated with price declines, as seen with LTC’s recent downturn. This metric often highlights short-term tops and bottoms, and its current behavior points to selling pressure.
The Network Realized Profit/Loss (NPL) indicator also projects a bearish outlook. The NPL, which shows network-level ROI based on transaction volume, recently recorded a sharp drop from -649,360 to -65.54 million between Friday and Saturday. This negative swing implies that holders are realizing losses, often a sign of capitulation or panic selling. As investor sentiment sours, selling pressure mounts, potentially pushing prices even lower.
Also read : Litecoin (LTC) Declines 1.5% To $62.86 – Can Bulls Defend Key Support Amid Bearish Sentiment?
Key Levels to Watch for LTC
For Litecoin bulls to regain control, LTC must reclaim the 200-day EMA at $70.63 and close above last Saturday’s high of $71.25. Should this level be reached, it could invalidate the current bearish scenario and push LTC toward the next resistance at $76.19, a 7% upside from the 200-day EMA.
However, if resistance around $68 holds firm, Litecoin could see a further decline, potentially targeting the August 27 low of $59. Given the confluence of bearish indicators, the path of least resistance appears to be downward unless key resistance levels are overcome.
