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Key Notes
- Litecoin (LTC) has formed a bearish parallel channel with a target of $70.
- The altcoin shot up 2.45% in the past 24 hours with $90 support staying strong.
- Hashdex filed an amendment to its Nasdaq Crypto Index US ETF to include Litecoin .
Litecoin (LTC) has been facing increased bearish pressure lately, dropping a massive 30% in the past month, with analysts pointing to a potential drop to the $70 mark.
Notably, prominent crypto analyst Ali Martinez outlined a critical technical analysis that could send LTC significantly lower.
Litecoin Parallel Channel Collapse
Martinez’s latest analysis shared on X highlighted Litecoin’s breakdown from a parallel channel pattern.
A parallel channel is a technical formation where an asset consolidates between two trend lines moving sideways. These trend lines represent support and resistance levels, with the price fluctuating within this range.
However, a decisive break below this channel often leads to a prolonged downtrend. Litecoin recently fell under the lower trendline, signaling a bearish move.
Martinez notes that price movements following such breakouts often mirror the height of the previous channel. Based on this, the analyst has projected a potential decline toward $70.
LTC Price Analysis
Additional technical indicators reinforce this bearish sentiment. The Relative Strength Index (RSI) currently stands at 35.92, approaching oversold territory but the gradient of the line still shows room for further decline.
The LTC price action broke down from the lower end of the Bollinger Bands (BB) in the past few days and is currently trading close to the potential support at $74.70. The nearest resistance is at the middle Band ($100.34) while another is at $125.98.
Furthermore, Litecoin’s 20-day Exponential Moving Average (EMA) is at $98.81, while LTC trades at $90.97, reflecting a clear downward divergence. Reclaiming this 20-day EMA would be the first move towards a bullish uptrend.
Hashdex ETF Amendment
Despite the bearish technicals, Litecoin recently gained attention due to a fundamental development: investment firm Hashdex has amended its Nasdaq Crypto Index US ETF to include Litecoin.
Previously, the ETF comprised only Bitcoin (BTC) and Ethereum (ETH), but the amendment expands its portfolio to nine cryptocurrencies, including Solana (SOL), XRP, Cardano (ADA), Chainlink (LINK), Avalanche (AVAX), and Uniswap (UNI).
The announcement from Hashdex resulted in Litecoin soaring a substantial 2.45% in the past 24 hours, claiming a daily high of $91.67. With a market cap of $6.87 billion, LTC stands at the 21st-largest digital asset by valuation, CoinMarketCap shows.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
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