Litecoin [LTC] drops beneath range lows, could $50 be next

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the opinion of the writer.

Litecoin was on a downtrend leading into May, and in mid-May, it formed a range between the $60 and $74 levels. At press time, the price appeared set to drop further after closing a session beneath $60.

USDT dominance stood at 6%, at the time of writing, and has oscillated between the 5.84% and 6.5% levels over the past three weeks. If this metric does indeed advance, it would be a sign that capital was fleeing from the crypto-assets and into the stablecoin USDT, which is an indication of selling pressure.

Source: LTC/USDT on TradingView

The trend has been downward for LTC since late November, and in April and May, the price was unable to defend both the $100 region as well as the $80 area. Both of these zones have been flipped from demand to supply zones, and the price continued to sink lower to the $60 mark.

In the past three weeks, the price appeared to form a range between $60 and $74 (white), with the midpoint at $67 which has served as both support and resistance in the same time period.

The previous day of trading saw LTC slip beneath the range lows and below the $60.4 mark. The Fibonacci extension levels (pale yellow) showed possible southward targets to be at $57.1, $51.7, and $46.4.

Source: LTC/USDT on TradingView

Zooming into the H4 chart, we can see that, apart from the Fibonacci extension levels, the $50 level has also been a strong higher timeframe support level.

A retest of the $60 mark could materialize in the next day or two, and an entry to a short position can be considered. A stop-loss can be set just above $62 for aggressive traders. Since the $63.5 area