Litecoin is making a spirited comeback after suffering its worst losses in over two weeks and hitting its lowest level since its crash following the crypto-craze last December.
LTC is now trading at $22, off from its lows around $21.50 earlier today but lower still from its brief high of $22.50. On Thursday, LTC indeed broke through its already softened resistance point of $22.50. It had tested this level several times over the preceding days but had held its ground on each instance. It then dropped sharply to $21.50 but resurfaced above $22.50. Thereafter, LTC resumed its fall at a feverish pace as selling accelerated, experiencing a devastating drop of over 17% during 8 hours of near continuous dumping. It fell as low as $18.50 before swiftly recovering to $20 and then trading in and around this level for the better part of 24 hours.
At the height of the sell-off, volume was its highest in over two weeks, with as much as 100,000 LTC (equivalent to roughly 5000 BTC) changing hands per hour.
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Over the last 24 hours, LTC jumped back up from the $20 floor, steadily returning close to the lower end of its $22.50-$23 resistance level but never quite gaining solid footing.
The behavior in LTC does mirror that of BTC over the past 48 hours but was far more exaggerated, with BTC’s drop maxing out at 7% while LTC’s was 17% from its already tenuous level of $22.50. This is validated by LTC’s fall to 25 mBTC at the peak of its decline. The amplified activity mimics that of other volatile periods in BTC, where LTC followed suit on a grander scale. The recent volatility is thus more likely attributable to general instability in BTC and cryptos in general than LTC specifically.
With a new floor set and incomplete return to the upside, LTC’s previous bearish signals are becoming more of a reality. It is possible that after flirting around $22 for a moderate period, LTC will gradually trend lower toward $20.50-$21 before finding new direction. Some traders, however, seem more upbeat about LTC’s outlook, viewing recent events as a prime buying opportunity.