The global crypto market capitalization fell 4.16 percent to $2.25 trillion in the last 24 hours, but trading volume increased 19.03 percent to $103.21 billion.
Bitcoin has begun a new slide against the US Dollar, falling below the $50,000 support level. In the short term, BTC is still at risk of falling below $47,500. Along with Ethereum, major altcoin too are trading red.
Coming to Litecoin (LTC), it may not be one of the most valuable cryptocurrencies by market capitalization, but it still has a lot of value for investors. However, given the current strong decline, interest in the stock may begin to wane soon.
Litecoin Price Analysis
When compared to the majority of other altcoins, Litecoin has a substantially higher rate of adoption. However, it is currently failing as a reliable investment vehicle.
However, as it began to fall, the RSI began to show a pattern that had previously been seen. On a macro scale, the last time LTC slipped into the bearish-neutral zone for this long was in June, when it fell 63.5 percent.
This pattern isn’t a random coincidence, as there have been numerous examples of it repeating. The RSI remained in the bullish zone for 46 days during the April rally, 43 days during the August rally, and 46 days during the November surge.
If we use the same logic to a bearish market, RSI is just 40 days into the bearish-neutral zone and is down 45.86 percent at press time. If this trend continues LTC will plunge more than 60% reaching at $101.6 by mid-January.
Litecoin Trading Volume
As soon as the first red candle appeared on December 24, Litecoin investors became concerned. Volumes quickly increased to $10.4 billion, and the whales were the largest contributors to these volumes. On December 24, transactions worth more than $100,000 totaled $9.89 billion.
As a result, the market should expect significant decreases in volume and token movement in the future, and LTC will continue to lose investor trust until it can turn the downtrend into support.