Litecoin price is in trouble today. It is trading at $145, which is down by more than 15%, making today its worst day in more than a year. It has also dropped by more than 22% from its highest level yesterday. Other altcoins like Stellar, Cardano, Bitcoin Cash and Ethereum have also dropped substantially today. In total, the market cap of all digital currencies has moved below $1 trillion.
What is moving Litecoin price: There are three primary reasons why Litecoin and other digital currencies are falling today. First, investors are selling their holdings to take profit. Furthermore, cryptocurrency is the best-performing asset class this year. LTC has jumped by more than 225% since September and by 20% this year alone. Consider the tweet below by Scott Minerd, the Bond King, who heads the investing committee at Guggenheim Partners.
Second, Litecoin is falling because of the strong US dollar. The dollar is rising today due to the rising fears of coronavirus as China puts more than 11 million people in Hebei in a lockdown. Other countries in Europe like the United Kingdom are considering boosting their existing lockdowns. Also, investors are bracing themselves for the next impeachment of Donald Trump.
Finally, Litecoin price is declining because of the overall performance of other financial assets like stocks and commodities.
Litecoin price technical outlook
A few weeks ago, I predicted that the LTC price would soar to $145. That happened. And on Friday, I predicted that LTC would soar to $200. That turned out to be wrong since the price soared to $186 and then quickly erased those gains.
Looking at the four-hour chart, we see that the price managed to move below the 50-period and 100-period exponential moving averages. The Average True Range (ATR), which is an important measure of volatility also rose.
Therefore, at this stage, the outlook of the LTC is neutral. A move below today’s low of $124 will mean that there are still more bears in the market. This will open the possibility of the currency falling below $100. However, a bounce above $160 will see it continue rising.
LTC technical chart