Last week, Litecoin’s price breached the $65 resistance level but failed to continue with the strong bullish trend. This triggered an aggressive push to the downside, which has resulted in prices falling by 25 per cent since September 13.
Today, Litecoin price looks to be continuing with the aggressive downward push, with prices already down by 3 per cent. The trend is in tandem with the general cryptocurrency industry, which has also been in an aggressive push to the downside. Litecoin, which is significantly correlated with other cryptocurrencies such as Bitcoin, has seen its prices getting dragged down by the poor market conditions, partly contributing to the current problems.
Besides the downtrend of the cryptocurrency industry, the latest migration of cryptocurrency projects from proof-of-work to proof-of-stake has put pressure on Litecoin. Today, cryptocurrency users are becoming environmentally conscious and investing and using only projects that do not consume a lot of energy.
In fact, one of the reasons most cryptocurrencies are migrating to proof-of-stake is due to the high energy intensity of the POW. Therefore, although for the short term, the impact is not being felt, there is a high likelihood that we might see users also preferring proof-of-stake and moving away from cryptocurrencies such as Litecoin, and its current investors know this.
Litecoin Price Prediction
The chart below shows today’s trading session aggressively pushing downwards and prices falling by 3 per cent. The chart also shows the current trend is long-term, with the past week recording an aggressive push to the downside that has resulted in Litecoin losing a quarter of its value. The prices are also trading below the Williams Alligator, a big signal that we are still in an aggressive bearish trend.
Therefore, using the chart, I expect the current price drop to continue for the next few trading sessions. There is a high likelihood we might see Litecoin price trading below the $45 price level and approaching the $41 support level. A trade above $55 price level will invalidate my Litecoin analysis.
Litecoin Daily Chart
