The Litecoin price has joined other cryptocurrencies in the ongoing meltdown. The coin is trading at $210, which is about 30% below its highest level this month. It is also trading at its lowest level since November 8.
There are several catalysts to the ongoing crypto sell-off. For example, investors are afraid about the rising Bitcoin supply as Mt.Gox Bitcoin redistribution starts.
Also, there are concerns that the spectacular rally could start fading as the Federal Reserve starts tightening its policies. This could happen after Biden nominated Jerome Powell for his second term as the Fed Chair.
At the same time, the LTC price has dropped as investors start taking profit considering that they have made spectacular gains this year.
Litecoin price analysis
Litecoin has been in a major sell-off in the past few days. This drop accelerated after the coin moved below the key support level at $245. This was an important level since it was along the “neckline” of the double-top pattern. Since then, it has fallen by more than 15%.
LTC has also moved below the 50% Fibonacci retracement level and dropped below the 25-day and 50-day moving averages.
A closer look shows that the coin is forming a double-bottom pattern whose neckline is at $230. Therefore, while the sell-off is likely to continue, I cannot rule out a situation where a rebound happens in the near term. A drop below $198 will open the possibility of it falling to $173, which is about 18% below the current level.