Litecoin is on the verge of ending another day with significant losses as it grapples with notable selling pressure amid the slight recovery across the crypto market.
A look at the one-day chart suggests the declines started due to rejections at a critical level: the $140 resistance. The asset failed to break above the mark after several attempts.
One such trial occurred on Jan. 17, resulting in a flip, but LTC ended the day below the mark. A few days later, another trial took place. However, the coin closed shy of the mark.
The most recent series of attempts took place as the asset saw renewed interest due to the ETF hype. Reports have shown that the US Security and Exchange Commission had a higher chance of approving a Litecoin exchange-traded fund. Investors reacted with massive buying actions.
LTC edged closer to the $140 resistance on Feb. 16 but peaked shy of the mark. It faced significant selling pressure at $137 and retraced afterward. Three days later, another trial happened, with the altcoin peaking at $139 below corrections. Litecoin attained $140 on Friday but retraced as trading conditions worsened and traders took profit.
In all events of the retest, the cryptocurrency sees significant selling pressure after its failed test. The latest decline is in reaction to another failed attempt.
Litecoin Saw A Jump in Bullish Sentiment
Litecoin is not among the many coins that gain significant attention across social media platforms. However, a change in this trend happened two days ago.
Reports by Santiment point to a sudden change in this trend. Coinshares LTC ETF filing 13 months after Bitcoin ETF approval sees debates of when approval will come heat up across these platforms.
Some analysts estimate a 90% chance that the SEC will approve the filing in 2025. The support from the current White House administration on crypto improves the odds. Investors see a new avenue for more gains, hence the price increase.
When Will The Downtrend End?
The one-day chart hints at further price declines. Previous price movements hint at a slip to $120. A failed attempt resulted in an over 36% dip in almost two weeks. Another on Jan. 18 resulted in a 40% decline before a rebound.
The altcoin may be in for a similar decline. However, current market sentiment suggests that the dip may not be as great as the previous one. It may lose a minimum of 10% before rebounding. Currently down by over 5% in the last three days, the downtrend may continue.
The moving average convergence divergence supports claims of further price declines. The 12-day EMA is on the downtrend as a bearish convergence unfolds. MACD may print more bearish signals if the 12-day EMA intercepts the 26-day EMA, heralding further price downturn.
At the time of writing, Bollinger prints sell signals. The coin broke above the metric during the previous intraday session. A breakout above the upper SMA may indicate peak buying and an impending reversal. This happened as the altcoin grapples with notable selling pressure at $126. Previous price movements hint at a slip to $118, Bollinger’s middle band.
The readings from MACD and the Bollinger bands suggest that LTC will lose the $120 support. The Fibonacci retracement level points to a possible rebound at the 38% Fib level at $116.
