Litecoin Price Prediction: Here’s Why LTC Price Failed to Reach $70 in August

Litecoin price fell below $63 on August 22, 2024, down 8% amid four consecutive losing days. On-chain data highlights profit-taking among short-term traders as the main bearish catalyst behind the ongoing LTC correction phase.

Litecoin Surrenders 8% Gains After Russia Rally

As the crypto markets recovered from the August 5 crash, Litecoin and XRP rapidly climbed the top gainers’ charts. XRP benefited from the favorable ruling in the Ripple vs. SEC case, while LTC, one of the top five largest Proof-of-Work (PoW) projects, was buoyed by Russia’s new law, which legalized crypto mining around August 8.

After a shaky start to the month, which saw Litecoin price dive to a three-month low of $50 on August 5, a remarkable 37% recovery drove it to $68 by August 18.

- Advertisement -

However, recent trends suggest that markets have slipped into a consolidation phase over the past week as strategic short-term traders who bought LTC during the market crash in early August have begun to book profits. As of August 22, Litecoin is trading around $63, having retraced 8% over four consecutive losing days since August 18.

The failure to advance above the $70 resistance has likely triggered a profit-taking frenzy among traders. This adds to the bearish sentiment as it suggests that the market is wary of pushing LTC higher without a strong catalyst.

Litecoin Facing Sell-Pressure as Order Book Data Reflects Bearish Outlook

A close examination of Litecoin’s exchange market depth data reveals a significant bearish outlook. Two primary factors contribute to this: the substantial imbalance between sell and buy orders and the weakening demand for LTC.

First, the total sell orders outweigh the buy orders by a considerable margin, with an aggregate volume imbalance of approximately 63,000 LTC.

This is reflected in the average bid and ask prices, which are nearly identical at $63.30 and $63.33, respectively. This minimal difference highlights the lack of upward price momentum, as sellers dominate the market and suppress any bullish attempts.

Second, the weakening demand for Litecoin is evident from the dwindling buy orders, which have struggled to keep pace with the aggressive selling. The current market depth indicates that buyers are hesitant to enter the market at current levels, reflecting a broader lack of confidence in Litecoin’s short-term prospects. Without a significant increase in buying pressure, the market is likely to see further downside.

LTC Price Forecast: Bulls Battling to Hold $60 Support

With Litecoin trading around $63, the bulls are now fighting to hold the critical $60 support level. The two technical indicators on the chart—the Keltner Channel (KC) and the Parabolic SAR (Stop and Reverse)—are leaning bearish, signaling a potential continuation of the downward trend.

First, the Keltner Channel shows that Litecoin has failed to sustain its recent rally. The price has slipped below the middle line of the KC, indicating a shift in momentum toward the bears.

The upper band of the KC, which previously acted as resistance near $70, remains untested as LTC struggles to maintain upward momentum. This suggests that the $70 resistance level could continue to be a strong barrier in the near term.

Second, the Parabolic SAR indicator has flipped above the current price level, confirming the bearish trend. Historically, this indicator has been reliable in identifying trend reversals, and its current position indicates that the bearish momentum is still intact. If Litecoin fails to hold the $60 support level, the next significant support is likely around $55, a level that aligns with the lower band of the KC.

In summary, the bearish setup highlighted by the market depth and the recent retracement suggests that Litecoin may struggle to regain the $70 level in the near term. The $60 level is critical, and a break below it could trigger a more extended downside move, potentially bringing LTC back to the $55-$50 range.