Litecoin vulnerable to deeper drop

Litecoin dropped as the price of Bitcoin declined to the seller's territory. LTC/USD seems to be quite heavy in the short term after failing to stay above broken upside obstacles. As you already know from my previous analysis, when BTC/USD drops, the altcoins could drop as well. You can use this correlation when trading on cryptocurrencies.

Litecoin lost around 5.86% in the last 24 hours and it is expected to resume its drop. Also, the volumes dropped by 3.37% in the last 24H, while its market cap decreased by 5.87%.

LTC/USD under massive pressure

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LTC/USD is pressuring the downside 50% Fibonacci line of the Ascending Pitchfork. If the price drops and closes below this line, it will signal a deeper drop. Technically, its failure to stabilize above the Ascending Pitchfork's median line (ML) in the last attempt signaled that Litecoin could develop a corrective phase.

It has retested the weekly pivot point (179.44) signaling that it could extend its decline. The 38.2% (158.15) retracement level is seen as the first potential downside target. Also, the lower median line of the Ascending Pitchfork could be used as a downside target.

Forecast

Closing and stabilizing under the weekly S1 (169.09) and below the 50% Fibonacci line is seen as a potential bearish opportunity. The lower median line (LML) is seen as an important downside target.

The material has been provided by InstaForex Company - www.instaforex.com

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