![Litecoin [LTC] drops beneath range lows, could $50 be next](https://topcryptonews24.com/wp-content/uploads/2022/08/Litecoin-LTC-drops-beneath-range-lows-could-50-be-next.png)
Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the opinion of the author.
Litecoin was on a downtrend main into Might, and in mid-Might, it shaped a spread between the $60 and $74 ranges. At press time, the worth appeared set to drop additional after closing a session beneath $60.
USDT dominance stood at 6%, on the time of writing, and has oscillated between the 5.84% and 6.5% ranges over the previous three weeks. If this metric does certainly advance, it could be an indication that capital was fleeing from the crypto-assets and into the stablecoin USDT, which is a sign of promoting stress.
LTC- 12-Hour Chart
Supply: LTC/USDT on TradingView
The pattern has been downward for LTC since late November, and in April and Might, the worth was unable to defend each the $100 area in addition to the $80 space. Each of those zones have been flipped from demand to provide zones, and the worth continued to sink decrease to the $60 mark.
Prior to now three weeks, the worth appeared to kind a spread between $60 and $74 (white), with the midpoint at $67 which has served as each assist and resistance in the identical time interval.
The day before today of buying and selling noticed LTC slip beneath the vary lows and beneath the $60.4 mark. The Fibonacci extension ranges (pale yellow) confirmed attainable southward targets to be at $57.1, $51.7, and $46.4.
LTC- 4-Hour Chart
Supply: LTC/USDT on TradingView
Zooming into the H4 chart, we are able to see that, other than the Fibonacci extension ranges, the $50 stage has additionally been a powerful increased timeframe assist stage.
A retest of the $60 mark might materialize within the subsequent day or two, and an entry to a brief place will be thought of. A stop-loss will be set simply above $62 for aggressive merchants. Because the $63.5 space has acted as resistance prior to now couple of days, a extra lenient stop-loss will be set close to the $64 mark as effectively. The $57, $51, and $50 ranges can be utilized to take revenue.
Supply: LTC/USDT on TradingView
The H4 RSI was beneath the impartial 50 line and fell beneath the 35 mark prior to now few hours of buying and selling. This improvement indicated robust bearish momentum behind LTC. The Superior Oscillator additionally shaped crimson bars on its histogram, to point out strengthening downward stress.
On the OBV is marked a horizontal stage (inexperienced) which has been defended, for essentially the most half, all through Might. Nevertheless, the earlier two days of buying and selling noticed OBV slowly sink beneath the highlighted stage.
Conclusion
The falling OBV and the downward RSI indicated that promoting stress was intense behind Litecoin. The upper timeframe worth motion confirmed the vary lows being damaged, including additional confluence to encourage shorting the asset. An entry might be taken close to the $60 stage. The $57, $51, and $50 ranges can be utilized to take revenue, with a conservative stop-loss at $63.9.
