The Litecoin (LTC) market seems to be falling off a cliff following its most recent rally. Litecoin is currently trading at around $79 after a 5% drop since last week.
As mentioned earlier in the week, LTC has seen exponential growth since the beginning of March, leading the current mini bull run with a massive 40% increase in price. However, it seems LTC has now started to consolidate closer to its 200-day EMA.
Looking at the chart above, the 200-day EMA has already crossed both the 50 and 20-day EMAs, and LTC is still trading above that support level, which sits at around $68. The 50-day EMA, which sits at around $58, is also showing strong support for consolidation above the 20-day EMA.
Volume, on the other hand, has decreased substantially. At the time of writing, LTC volume across major exchanges is about $2.3 billion, whereas just a couple of weeks ago it was sitting close to $7 billion. Could thinner volumes mean buyers are back in charge? One could argue that depends on what happens to Bitcoin, even though Litecoin’s rally started before Bitcoin’s.
The altcoin market looks like it is on a clear downward trend, with lower highs since the boom in early April. Plus, volume seems to be strongest between $28-$44 for Litecoin.
Litecoin was released in October 2011 by Charlie Lee, a former Google employee. It was a fork of Bitcoin with the main difference being a smaller block generation time, increased maximum number of coins, and a different script-based algorithm.
Litecoin is one of the leading cryptocurrencies and is one of the Top 10 cryptocurrencies by market capitalisation.
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