Amid the blaring cacophony of digital currency chaos, the LTC has seemingly turned a deaf ear. In the past 24 hours, its price tumbled by 5%, ending up at $86.21 after successfully completing its halving. The damping effect of the halving event seems to challenge the perception of LTC’s flourishing destiny as it takes the plunge, declining 8% in the last 14 days and as much as 20% in the past month.
The 30-day moving average (yellow) for LTC is down below its 200-day average (blue), showing a significant loss in momentum while indicating potential oversell. Meanwhile, its relative strength index (purple) reading is at 30, signaling an undervalued coin and overselling. These indicators typically spell a recovery, but given the coin’s dwindling support level (green), the possibility of further losses looms large.
LTC’s recent halving had been the talk of the town, with increased hype leading to a one-year peak of $113 in the month of July. However, the anticipated market frenzy never materialized, prompting early investors to cash out, resulting in the lackluster performance of LTC.
In contrast to this backdrop of declining fortunes, the technical indicators are flashing a bullish signal. They predict an imminent rally, a potential rebound of LTC to maybe even $90 or higher in the coming weeks.
On the other hand, the coin’s fundamentals draw a much gloomier picture. Last month’s Ripple-SEC ruling, contradicting the claim of the Securities and Exchange Commission (SEC) that most cryptocurrencies (excluding Bitcoin and its forks, such as LTC) were securities, brought an unwelcome cloud over LTC’s price. After both Coinbase and Binance faced legal heat from the regulator in July, LTC briefly basked in the limelight.
However, with a US court suggesting that XRP and alike altcoins are not deemed securities, the charm of LTC seems to be fading. Clearly, this entire situation represents a juxtaposition. With technical indicators suggesting a brighter future for LTC while fundamentals paint a gloomier picture, it brings us to the question: Can we truly predict the future of Litecoin—or for that matter, any altcoin—in such a volatile market?
Source: Cryptonews
