Litecoin Trading- LTC/USD Technical Analysis, Aug 31: Litecoin trending lower, hits 10-day low

Litecoin (LTC) volume has surged in the past 3 hours by over 10-fold over its recent average as another wave of selling just hit

Litecoin (LTC) volume has surged in the past 3 hours by over 10-fold over its recent average as another wave of selling just hit the coin. It has shed as much as 7.5% to $4.88 on BTC-e during the period, hitting its lowest level in 10 days.

The pattern of flat trade followed by short bursts of heavy selling has become a trademark of Litecoin during the latest round of selling. After exhibiting the exact behavior 72h ago, LTC enjoyed a short-lived recovery back to as high as $5.44, followed by more of the same.

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Volume is currently exceeding 70,000 LTC (approx. $350,000) per hour. Following the flash crash on BTC-e 2 weeks ago, such behavior raises the prospect of margin calls taking place as traders cope with losses arising from a 30’% decline during the past 4 weeks. Margin calls are believed to have been a major catalyst to the flash crash.

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LTC-USD- Aug 31

Mid-term, LTC appears to be resuming a gradual decline, interrupted by a dead cat bounce to above $6. The near-uninterrupted trajectory of decline has sent its 50-day moving average to below $7 for the first time since December, with the currency trading at a 30% discount to this level.

 

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