- Litecoin posts five straight daily losses as ETF delay by SEC weighs on sentiment.
- Bullish channel rejection, bear cross, and failed support retest hint at more downside.
- 200-SMA offers near-term support, but the yearly low remains in sight for sellers.
Litecoin (LTC/USD) drops for the fifth straight day, hitting a fresh weekly low near $82.20 in Tuesday’s US session. The decline extends the month-start pullback from a key trendline resistance, previous support, and justifies a downside break of a month-long bullish channel, not to forget the bear cross on the daily chart. That said, bearish Moving Average Convergence Divergence (MACD) signals, a neutral RSI, and the US SEC’s delay in altcoin ETF approvals add strength to the downside bias.
Technical chart: Daily chart supports the sellers
Source: Trading view
Litecoin’s rejection from a nine-month-old support-turned-resistance line points to further downside, with immediate targets at the mid-April high of $80.50 and the $80.00 mark.
If LTC/USD selling continues past $80.00, the July 2024 peak at $76.76 and the 78.6% Fibonacci level near $71.00 could challenge bears. That said, a break below $71.00 would expose Litecoin to the key levels at $70.00 and the yearly low of $63.21.
On the upside, the 61.8% Fibonacci level at $87.15 acts as initial resistance for the Litecoin buyers, followed by the previous support-turned-resistance near $92.50. For the LTC/USD bulls to regain control, a sustained break above the 200-SMA around $98.00 is essential.
LTC/USD: Four-hour chart
Source: Trading view
On the 4-hour chart, the 200-SMA near $80.45 and the $80.00 round figure offer immediate support for LTCUSD, limiting further downside.
On the flip side, the lower boundary of a month-old bullish channel near $87.00 acts as the first upside barrier before stronger daily resistances come into play.
Overall, bears remain in control, though short-term selling may pause around the 200-SMA.
