Litecoin is Down 50% and is Only Dropping More
The litecoin to U.S. dollar exchange rate has gone below $50, which is sad news after the coin hit an all time high only three weeks ago of just shy of $100.
The current selloff of the cryptocurrency is undoubtedly coinciding with the markets weakness as a whole in recent times, but it could show that this is leading to a bullish reversal.
Data coming from CoinMarketCap, has shown that litecoin has gone down a solid 11% in the last 24 hours alone. In the time of a week, the price shot down 14% and the month as a whole, it is down 1%.
The cryptocurrency did do surprisingly well throughout the course of the year, but has recently dropped more than 50% of the gains it received during the year. This year it went from $3.27 to over $100 during the month of September.
Coinbase announced earlier towards the beginning of September that it would begin to offer litecoin on its platform. This however does not seem to have any effect on the pricing.
The simple moving average or SMA for litecoin is at a price of $33.52, which is very similar to last Friday’s price of $33.56.
The relative strength index or RSI is bearish, but the upward tick from $33.56 did not have any reasoning behind it. It appears as though there may be a bearish reversal as well as an uptick in the ATR which may mean strong pressure for investors to sell.
Litecoin has effectively been similar to bitcoin and seems to be affected by the trends of cryptocurrency as a whole. With the market in a state of figuring out whether or not it is a bubble, it will be interesting to see what occurs to the alternative coins (altcoins) as time goes on.