After threatening new lows on several occasions but rebounding each time, one got the impression that Litecoin may have bottomed out. Today, however, LTC/USD did set a new 2014 low- just barely.
The pair briefly touched $6.65 on BTC-e, the lowest price reached during “regular trading” in 2014 after hitting $6.67 in early July. This does not include a period of flash selling which saw the pair rapidly descend to $2.21 in a matter of minutes a few days earlier.
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As previously assessed, the pair’s consistent decline and adherence to a 15% discount to its 50-day moving average spelled trouble in recent days. With today’s losses, the trend remains perfectly intact- the moving average is now $8.00. With the backdrop of lower average prices over the past 50 days, repeats of a dead cat bounce to $9 experienced in early July are far less likely.
Versus BTC, LTC now trades at 0.0116, consistent with LTC/USD’s 3-4% decline and BTC’s stagnation. Earlier indications of a 0.01 rate by August are still possible.