The Litecoin price is attempting to bounce back after dropping to a multi-week low of $170 yesterday. The LTC is trading at $192, which is 6.7% above its lowest level this week. Its market cap is at$12.89 billion, according to data compiled by Coin Marketcap.
What happened: Litecoin has been an embattled cryptocurrency after it reached an all-time high of $245. It has dropped by more than 22% from this high. This performance is mostly because of the overall weakness of cryptocurrencies, especially Bitcoin.
As one of the oldest digital currencies in the world, Litecoin tends to track the performance of Bitcoin. That’s because many traders see it as a relatively cheaper alternative to BTC, which is trading close to $60,000.
Recently, demand for Litecoin has been relatively weak. In fact, a quick look at social media mentions and Google search trends show that fewer people are searching for the currency.
Litecoin price forecast
The four-hour chart shows that the LTC price dropped to $152 during the February crypto sell-off. This was a 38% below its all-time high. Since then, the digital currency rebounded and rose to a high of $230, which was slightly below where it was in February.
A closer look at the chart also shows that it has formed what seems like a head and shoulders pattern, with the month-to-date high being the head. Therefore, the Litecoin price may resume the downward trend and possibly retest the February low of $152. This is a 20% drop below the current level. On the flip side, a move above the right shoulder at $200 will invalidate this trend.