“SellOff” across the board today: Why are they dropping and how low will they go? Litecoin is already trading just above the main long-term trendline, which comes from April 2017. If that one doesn’t hold, next support level is around $90. If we take a look at the MACD and especially at the Directional Movement Index, it looks quite difficult that the current level holds.
Fxstreet says, we don’t recommend buying any of these Cryptocurrencies at least until the speed of the current sell-off diminishes and the indicators’ outlook backs up new rises, something that is still far from happening. Giving a much-needed perspective on the current situation, nobody should be surprised by the falls we are currently witnessing. If Cryptos were able to rise above daily 20% rises, it is completely reasonable that they can also fall at the same rate. Volatility doesn’t care about directions.
The bloodbath continued among major cryptocurrencies as well as in the US equities market on Monday. The US stocks fell the most since 2011, with the Dow sinking more than 1,100 points. It is interesting that the cryptocurrency market is getting cues from the US equities market and showing some correlation in that sense.
LTC/USD
The pullback in Litecoin was stronger than the other cryptocurrencies because it reached close to the 20-day EMA. This shows interest in buying at the lower levels.
LTC/USDIf the bulls accumulate the price close to levels between $107 and $120 levels, it will point to a possible bottom. We might be interested in getting the LTC/USD pair if it breaks out of the $175 levels.
On the other hand, if the bears succeed in breaking below the lows of February 2, a fall to the final support of $84.708 is likely.
Due to this uncertainty, Cointelegraph doesn’t recommend any long positions on Litecoin at the moment.
Adam Webb is editor in Smartereum, blockchain and currency news, where he produces updates on Blockchain, Ethereum and other alternative cryptocurrencies.
