Litecoin is currently struggling to gather momentum in the $130 region despite an uptick in other altcoins assets like Ethereum, Aave and Polkadot.
It seems to be correlating closely with Bitcoin’s price action, although it did print a lower high at $117 on Wednesday.
Litecoin’s chart against its Ethereum trading pair on Binance paints a clearly woeful picture, with it having lost more than 54% of its value since December 26.
It is now the eighth largest cryptocurrency by market cap after being leapfrogged by Polkadot, Chainlink and Cardano in recent weeks.
A key level of support remains at $122, but if that breaks with a daily candle close below it will likely slump back to its previous level of resistance at $93.
If, however, it can enjoy a period of bullish momentum, it could target the $137 level of resistance before potentially looking towards $165.
For that to happen it would need a healthy injection of trade volume, with it currently averaging around $6 billion per day compared to more than $18 billion before the turn of the year.
If Bitcoin suffers a breakdown in price below $30,000, Litecoin will likely suffer a worse fate as it would confirm a downtrend with lower highs and lower lows.
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Litecoin was released in October 2011 by Charlie Lee, a former Google employee. It is a fork of Bitcoin, with the main difference being a smaller block generation time. The protocol also increased the maximum number of coins and implemented 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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