After Litecoin (LTC) breached a new low yesterday, the floodgates have opened.
Following a new 2014 low of $6.65, Litecoin initially recovered to $6.80 as the minor breach failed to convince the broader market of trouble ahead. However, a 4% drop in less than an hour sent LTC to $6.50, new bear territory according to all accounts. The ensuing sell-off, uninterrupted and unforgiving, has dragged Litecoin down to as low as $5.40- a loss of 18% within a 12h span.
During a period of flash selling, LTC dropped to $4.85 on volume of 100,000 LTC (roughly $550,000) within one hour.
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Litecoin is trading at its lowest price since November, at the start of its run-up to $48 within a few weeks. It has fallen out with its 50-day moving average, which now at $7.94, is 30% above the traded price- double the typical offset in recent trading. It is therefore likely that a dead cat bounce is in the making, with a push back above $6.00 during the next 48-60h expected.
Other altcoins have sold off as well, although Litecoin remains the hardest hit. This again raises the question if the market has specific concerns with Litecoin, or if its struggles are merely representative of growing disillusionment with altcoins in general.
Notably, Scrypt-based coins like Dogecoin are among the hardest hit. Dogecoin fell by 15%, the 2nd most among the top 10 altcoins. It is now trading for 24 satoshi and risks reaching new all-time lows. It has slipped behind MiadSafeCoin to 10th in market cap rank, 5th amongst mineable cryptocurrencies.
Ripple remains the best performer amongst the top 10, holding at about even during the past 24h.
Bitcoin itself has declined as well, but only by about 3% during the past 12h. Thus, LTC/BTC gets ugly: 0.00975, below the 0.01 level feared for this month.