Litecoin (LTC) was on a strong rise, with its price recovering the $100 level. However, the altcoin entered a correction, which once again validated this level as resistance.
Technical analysis shows that the price of LTC will continue to fall in the coming days. Check out the reasons.
Bears dominate Litecoin
One of the reasons for Litecoin to operate higher for most of this year was its strong correlation with Bitcoin. As the world’s largest cryptocurrency remained consolidated or made strong jumps in 2024, BTC ended up pulling LTC higher.
However, this correlation dropped from 0.89 to 0.7. This is not the best news for the altcoin as, historically, declining correlation results in price drops.
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To make matters worse, there is a divergence of DAA (Daily Active Addresses) from the price, which suggests a decline. In general, when the price is low and investor participation is high, it is considered a buy signal.
However, the condition of the metrics is such that the price is high but the active addresses are low. This means that the indicator is giving a sell signal, which is generally considered a trigger for a major price correction.
Therefore, the possibility of Litecoin’s price falling on the charts is quite high, and perhaps not even Bitcoin will be able to save the altcoin.
Read more: Litecoin vs Bitcoin – What are the differences?
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Price prediction
Litecoin is falling this Monday (1). During intraday trading hours, its price rose about 7.5% before losing it all and falling back below $100.
The price indicators, Average Directional Index (ADX) and the MACD are both bearish. The latter, a trend-following momentum indicator used to identify uptrends and downtrends, is also losing bullish momentum.
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ADX, on the other hand, managed to surpass the 25 threshold, but will not maintain it. This means that the active uptrend will eventually disappear and turn into a downtrend. This would result in Litecoin price losing the $100 support and falling to $93.
Read more: How to buy Litecoin (LTC) in 4 steps
However, if the $100 support recovers, LTC will find some support to avoid a drop and will likely recover. Breaking above $110 will invalidate the bearish thesis, taking the price to $115.
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