The entire crypto market is in deep red, losing $33 billion in these three days. In the past 24 hours, Litecoin has lost 12.4% of its value and is currently trading at $63.13.
The 7th largest cryptocurrency by market cap of $4.3 billion is still up 60% in 2020 so far, but has fallen to late January levels.
As the market turns red, large-cap altcoins that have been flying like crazy have yet again turned red against BTC. Litecoin itself has slid down 7% against BTC in the past 24 hours.
According to trader and analyst Bitcoin Jack, Litecoin has already been giving off some bearish signals lately.
“LTC vs BTC >Daily close below red = bearish >Liquidity was not raided before this retest >Fading volume >Bearish retest until proven otherwise >Vague rising broadening wedge as top,” he explained.
Despite over 10% Drop LTC still “Insanely Bullish”
The cryptocurrency, however, is trading above its key near-term support level which has some traders still bullish on the digital currency and seeing the ongoing correction as a ‘buy the dip' opportunity.
Bullish W MACD cross
Bullish W ichi cross
Major S/R flip
Weekly supertrend turned bullish
— Byzantine General (@ByzGeneral) February 23, 2020
For the most part, it all depends on Bitcoin. If the leading cryptocurrency takes another hit, altcoins will drop harder. And to prevent a larger move to the downside, trader and investor Josh Rager says BTC price needs to hold above $9,300.
“Price dropped and bounced near the weekly/daily support around $9,580. Holding above the $9,550s is a good sign on higher time frames and breaking below the $9,300s will still flip bear bias. Lower time frames in down channel but weekly chart still not confirmed trend reversal.”
Litecoin HODlers Holding the Fort
Interestingly, while the price is in the red zone, the fundamentals of the Litecoin network are faring well.
According to crypto data provider Intotheblock, the number of addresses with a balance in LTC has climbed to its all-time high (ATH) at 5.27 million addresses.
2018 was a bad one for crypto assets where some lost as much as 95% of their value. Litecoin also lost over 90% of its value and is still down 82% from its peak of $373. In 2019, things started turning up but it has been only in 2020 that altcoins enjoyed a rally.
During this, however, accumulation has been going steady with HODlers having the faith in the crypto asset as evident from the fact that 3.05 million LTC have been held, not moved for more than 5 years.
Additionally, 1.94 million addresses, which is 46% of the total LTC holdings address have been HODled for over the past year.