Litecoin Drops 9% in Week Amid Bearish Market Sentiment

Litecoin has been experiencing a bearish trend, with a noticeable downward movement in its price action over the past 24 hours. The cryptocurrency started the day around $89.00 but faced a sharp decline, dropping to $87.00 before managing a brief recovery to $88.50. However, the price has since fallen again to $84, indicating sustained selling pressure in the short term.

Technical indicators suggest that Litecoin may face further downside, with multiple metrics aligning to support a bearish short-term outlook. The Relative Strength Index (RSI) is drifting toward oversold territory, which could hint at a potential bounce but also signals bearish sentiment in the market. Momentum oscillators such as the Stochastic indicator and the Commodity Channel Index (CCI) are also painting a gloomy picture, tilting toward further downward momentum if no strong bullish catalyst appears, especially as prices struggle to hold above the $87 support level.

In the near term, shorter-duration moving averages are flashing strong sell signals, driven by Litecoin’s recent negative performance, with a -9.0% drop over the past week and a -12.5% decline over the last two weeks. This paints a clear picture of growing bearish momentum and sustained selling pressure. However, the longer-term moving averages tell a different story. Despite recent setbacks, Litecoin has posted a 2.3% gain over the past year, keeping the long-term trend technically bullish. This divergence suggests that while short-term traders may be responding to immediate price volatility and weakness, long-term investors could still see value in the asset, especially if broader market conditions stabilize or improve.

The broader market sentiment currently leans bearish, weighed down by Litecoin’s inability to maintain key support levels amid recent price volatility. Even with long-term growth providing a degree of optimism, the prevailing trend is defined by downward pressure and uncertainty. Until short-term indicators begin to align with the long-term bullish structure, Litecoin may continue to face a challenging environment.