Litecoin trading is highly volatile again today, following steep losses and choppy recoveries over the previous 3 days.
LTC is currently trading around $21.70. Earlier, it reached a 3-day high of $23.50, temporarily resurfacing above its fading $23 support level. This represented a gain of over 10% in less than 6 hours. The establishment of successively increasing high and low points brought with it a hope of LTC’s emergence from its downward spiral, and that the recent downward pressure was merely a flash crash arising from oversupply in the market.
However, the sheer market volatility and its wildly rapid ascent signalled a steep correction was coming, which indeed it did. The gains have now virtually disappeared, leaving LTC hanging onto its now reduced support level of $21.50.
ACY Securities Supports ASIC’s Product Intervention OrderGo to article >>
Keeping its head above water will be key at this level, failure of which will likely send LTC easily back toward $20.
Volume was heavy on this upswing, peaking at nearly 70,000 LTC (equal to nearly 2000 BTC) per hour. Volume has remained above normal and peaking at and around points of reversal in price movement.
Versus Bitcoin, it is holding around 27 mBTC.
Speculation had been that holders are dumping the cryptocurrency out of security fears, following recent reports of hacking and theft. More recently, enthusiasts say that LTC is getting dumped in favor of other hot-shot altcoins that have been posting monumental gains of late.