Litecoin (LTC) is one of the most popular cryptocurrencies available today. Despite its popularity, the asset has not been able to capitalize on the recent halving event and has seen a surge in bearish sentiment. In order to get a better understanding of where the price could be headed, renowned analyst Crypto Tony recently weighed in with his interpretation of the situation.
Crypto Tony predicts that Litecoin may be headed for a temporary support level around $65. This could provide attractive entry positions for traders looking for short-term opportunities. However, should Litecoin rebound and clear the $90 mark, the analysis would be invalidated.
Unfortunately, Litecoin’s day-to-day traded volume has dropped from about $1 billion to around $260 million as of Monday. To make matters worse, the number of short trades have overshadowed the number of long-trades, with the ratio standing close to 0.9 according to Coinglass’ crypto open interest.
Given this dip in trading volume, Crypto Tony believes bearish sentiment currently has the upper hand. However, he warns that any retest of the $65 level as a resistance zone must be verified before any trades are made.
This bearish outlook may come as a surprise given that the Litecoin halving occurred just days ago. The event only happens every four years and results in a 50% drop in rewards from mining, reducing the supply and theoretically pushing up the price.
Only time will tell if the Litecoin price will stabilize around the area identified by Crypto Tony. Until then, traders may need to exercise caution as the market sentiment remains bearish