Litecoin (LTC) has declined 5.6% in the last 24 hours, bringing its market capitalization closer to $6.3 billion as sales pressures increase. The sudden drop has pushed key technical indicators into bearish areas, and momentum metrics have quickly faded.
While RSI is approaching the level of being sold, both the one-sided cloud and EMA structure suggest a continuous downside risk. Unless LTC finds support immediately, prices could drop before any meaningful recovery attempts begin.
Litecoin RSIs get closer to territory that is not oversold as momentum weakens
Litecoin’s relative strength index (RSI) fell sharply from 61.4 to 35.92, reflecting the rapid change in market momentum for just one day ago. RSI is a momentum oscillator that measures the speed and magnitude of recent price changes, helping traders identify potential excess sales terms.
Values ​​above 70 usually suggest that the asset is over-acquired and may be caused by an adjustment, while values ​​below 30 indicate that it is over-sold and may be potentially ready for a rebound.
Measurements between 30 and 70 are considered neutral, indicating that price actions are more balanced or integrated.
As Litecoin’s RSI floats just above the oversold threshold, this indicator weakens bullish momentum and suggests a rise in sales pressure.
Although the 35.92 read has not yet been confirmed to be unsold, the LTC is dangerously close to the level where buyers may begin to look for valuable opportunities. If the RSI is below 30, it could indicate a potential bottom and short-term rebound.
However, if bearish feelings continue to be built, the RSI may remain suppressed. They demand more negative risks before meaningful recovery.
As rock clouds turn red, Litecoin’s bearish bias strengthens
Litecoin’s Ichimoku Cloud Chart is currently offering a bearish composition, with price action far below Red Cloud (Kumo) showing downward momentum.
The main span lines (senkou span A (green) and senkou span B (red)) form red clouds first, suggesting that bearish trends may persist in the short term.
Thick red clouds usually reflect strong resistance above current price levels, making upward breakout difficult unless momentum changes crucially.
Additionally, the Tenkan-Sen (blue line) crosses bearing the Kijun-Sen (Red Line) further confirms the bearish bias.
The crossover strengthens short-term debilitating, but the forward cloud remains flat, indicating bullish convictions and lack of volatility.
The chart shows little indication of an immediate trend reversal as price candles continue to move down from the clouds.
Litecoin floats near key support as EMA lines stay bearish
Litecoin’s price is currently hovering at $83.11 near the key support level, with its price action showing signs of weakening momentum.
The EMA structure is bearish as it is often interpreted as a signal of downward continuation, as its short-term moving average is below the long-term average.
If this support fails, the LTC could slip towards a lower level at $81.30 as the next potential drawback target.
However, a change in momentum could lead to recovery, especially if Litecoin regains its highlands and retests resistance at $89.31.
A clean breakout above that level could open the door to make more profits towards $90.97, or in some cases $94.17.
For now, the market is at a technical intersection, with both risk and opportunity relying on a $83.11 support zone.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always carry out your research and consult with an expert before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
