Litecoin dropped by 7 per cent in yesterday’s trading session. In the early hours of today’s session, Litecoin also looked likely to continue with the trend. However, prices have recovered, and the crypto is currently up by 0.5 per cent.
Litecoin has dropped by 33 per cent. However, much of this drop has been due to the current cryptocurrency trend, where prices are on a downfall. Litecoin, which is a fork of Bitcoin, is also heavily correlated with the prices of Bitcoin. In the past three months, for instance, the two cryptocurrencies have had a correlation coefficient of 0.98.
Therefore, any price drop that Bitcoin has experienced has resulted in the prices of Litecoin also falling. Bitcoin, which is a major cryptocurrency trendsetter, has been very bearish throughout the month. The result is an increasingly aggressive bearish trend by Litecoin crypto.
Litecoin Price Prediction
Throughout the year, Litecoin prices have struggled. This month, the prices have dropped by 33 per cent. This has extended the year-to-date price drop to 56 per cent. However, in today’s trading session, a slight recovery of 0.5 per cent price gain has occurred. This is after Litecoin opened the trading session with an aggressive push to the downside.
Looking at the chart below, we can see that, before today’s slight push to the upside, Litecoin had lost 17 per cent of its value in four days. This is after failing to hit the $74 resistance level. Therefore, using the chart, my Litecoin prediction expects the current bullish trend to reverse and continue the downward move. Furthermore, there is a high likelihood of the price reversal happening within today’s trading session. As a result, we will likely see Litecoin trading below the $60 price level again.
However, if today’s session pushes past yesterday’s opening price of $68, then my analysis will be invalidated. It will also mean a possible bullish move is in the offing. Such a push in the late hours of the trading session will also set the pace for tomorrow’s trading session.