Cryptocurrency merchant Grayhood said on X that Litecoin is currently experiencing a bearish trend, highlighting the continued weakness in price action. LTC has decreased by 2.8% over the past 24 hours, and the candlestick chart reflects a significant downward movement.
As the chart he quoted shows, LTC started the day around $89.00 but faced a sharp drop, down to $87.00, and then briefly recovered to $88.50. However, the price has since fallen again to $84, indicating continued sales pressure in the near term.
Momentum disappears: RSI drifts to oversold territory
According to Grayhood, current technical indicators suggest that Litecoin may face further disadvantages, with multiple indicators consistent with the bearish short-term outlook. One of the main indicators of focus is the Relative Strength Index (RSI), which appears to be tilting towards oversold territory.
While such a move may suggest a potential rebound, Greyhode warned that it also indicates bearish sentiment in the market. In addition to RSI, momentum oscillators such as the Random Indicator and Commodity Channel Index (CCI) are also painting frustrating pictures.
These tools are often used to assess the strength of market reversals and ongoing trends. In this case, both tend to further downward momentum without a strong bullish catalyst, especially when prices are difficult to pay above the $87 support level.
Short-term decline contrasts with annual earnings in the moving average of LTC
Analysts further highlighted Litecoin’s moving average view, which suggests a market fall between short-term weaknesses and long-term potential. In the short term, the shorter duration average flashes with a strong sell signal. These are driven by LTC’s recent negative performance, down -9.0% in the past week and -12.5% in the past two weeks, clearly portraying the ongoing bearish momentum and ongoing sales pressure.
However, the long-term moving average tells a different story. Despite recent setbacks, Litecoin has grown at 2.3% over the past year, which makes the long-term trend technically bullish. This divergence suggests that while short-term traders may react to instant price volatility and weaknesses, long-term investors can still see the value of assets, especially as broader market conditions stabilize or improve.
That said, for the moment, wider market sentiment tends to be bearish, as Litecoin cannot maintain the pressure on key support levels in recent price volatility. Even if long-term growth provides a certain level of optimism, general trends depend on downward pressure and uncertainty. Litecoin may continue to face a challenging environment until short-term indicators begin to align with the long-term bullish structure.
