Litecoin’s flashing red. The 5.6% crash in the last 24 hours has eviscerated the market cap, holding it just shy of $6.3 billion. Selling pressure mounts on and tightens its grip on LTC. Bearish shout-out from the technical panel, while momentum fled away faster than a summer tan.
Litecoin is skating on thin ice. The RSI appears to be giving oversold warnings, but don’t be mistaken: the Ichimoku Cloud and EMA formations are grades of probable future losses. Will the LTC be thrown a lifeline, or will it go down to the abyss before any actual recovery can even begin? Time is running out.
Litecoin RSI Nears Oversold Territory as Momentum Weakens
Litecoin’s RSI just plummeted in free fall from a cozy 61.4 to a fragile 35.92 in the blink of an eye! Rather than one slow and steady drop, here is one cliff dive. This momentum oscillator, typically one of the best sentiment indicators in price, is hollering “Oversold.” Can the bulls stage the great comeback, or is this the start of a much deeper dive? Traders will want to keep an eye glued onto the charts.
The Relative Strength Index can be thought of as a stock fever thermometer. A reading of over 70 suggests that the market is too hot and in need of cooling-off through a correction. Below 30 spells that the market is too cold and a rebound in price is in the offing.
Readings between 30 and 70 are considered neutral, signaling that price action is more balanced or consolidating.
LTC RSI. Source: TradingView.
With Litecoin’s RSI now hovering just above the oversold threshold, the indicator suggests weakening bullish momentum and rising selling pressure.
Litecoin’s Relative Strength Index or RSI teeters at 35.92-dangerously close. It is not technically oversold “just yet,” and thus calling to value investors. A dip below 30 would prompt a buying spree and a quick short-term rally from what is perceived as a bottom.
However, if bearish sentiment continues to build, the RSI may stay suppressed suggesting more downside risk before any meaningful recovery.
Litecoin Bearish Bias Strengthens as Ichimoku Cloud Turns Red
Litecoin’s Ichimoku cloud flashes a threatening red: prices sit heavily underneath a heavy Kumo cloud awash with potential storms for the cryptocurrency. Bearish momentum is in clear control.
A crimson cloud looms above the horizon. In this chart, Senkou Span A and B, as dual indications of bearishness, unite to form a mature image of bear, arguably hinting that the shadow of market bear could stay for quite a while.
Now imagine that the price hits a crimson wall – that would be the resistance. This fiery barrier means that sellers are fiercely defending the current levels; any attempt to break out is an uphill battle. Only a surge of unstoppable momentum can defeat this red cloud and push prices up.
LTC Ichimoku Cloud. Source: TradingView.
Additionally, the Tenkan-sen (blue line) has crossed below the Kijun-sen (red line), further confirming the bearish bias.
This crossover reinforces short-term weakness, while the cloud ahead remains flat, signaling a lack of bullish conviction or volatility expansion.
With price candles continuing to move downward away from the cloud, the chart shows little sign of immediate trend reversal.
Litecoin Hovers Near Key Support as EMA Lines Keep Bearish
Litecoin is currently trading on the high side. Can the bulls keep the $83.11 level tethered, or will it tumble beneath? Momentum is weakening and the bears are on the prowl.
EMA structure paints a grim picture: Short-term averages huddle beneath their long-term counterparts, whispering of further descent.
If this support fails, LTC could slip toward lower levels, with $81.30 as the next potential downside target.
LTC Price Analysis. Source: TradingView.
If it can summon energy, then a comeback is possible for Litecoin that could be favored by breakouts from the current lows and especially challenges against the $89.31 fortress.
A clean breakout above that level may open the door for further gains toward $90.97 and possibly $94.17.
For now, the market remains at a technical crossroads, with both risk and opportunity hinging on the $83.11 support zone.
Thanks for reading Litecoin Nears Oversold Levels – What’s Next for LTC Price?
