The latest cryptocurrencies news show that the Litecoin price falls under the $50 mark again with a 2.28% decrease and LTC investors are worried. Even though the technicals behind the coin were stable over the past week and LTC was eyeing the $53 levels, a sudden drop occurred and the cryptocurrency is now in the red.
A couple of days ago, Litecoin (LTC) was trading near $50 which is a major psychological level, following a drop which brought it back to $46 now. The 12-hour chart of the coin is visible in the Litecoin news and updates – you can see it below.
Also, the formation of a symmetrical triangle pattern on the 12-hour Litecoin chart indicated a potential breakout that could go either up and down. Now, we can see that as the Litecoin falls under $50, the drop was towards the lower region.
After a crash like this, the 50 daily moving average (in pink) and 100 daily moving average (in blue) on the image above sustained a bearish crossover in April. However, after consequent surges, the two DMAs started converging and were observed to be trading very close to each other.
So, what are the next scenarios for the LTC price we could see in the crypto news?
The first scenario is a bullish breakout above $50. For this to happen, the LTC volume must be pumped and in this case, the daily moving averages need to stabilize.
In the second scenario, a bearish breakout is highly unlikely as the coin found critical support at $40.35 and $35.79 as depicted by the VPVR indicator. However, analysts think that a bearish breakout is unlikely at this point.
All in all, the potential breakout as the Litecoin price falls under $50 is much needed for LTC investors to regain their confidence and analysts to start talking about new heights again. However, if the price of LTC stabilizes in the $40s for more than a week, we could expect bears to revisit the coin and not do anything but make it indifferent to new profits or losses.
Currently, the Litecoin (LTC) price is at $45.91 with a $2.98 billion market cap and a daily volume of $64.8 million.
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