Litecoin/Tether (LTCUSDT) Market Overview: 24-Hour Downtrend and Key Reversal Signs

• LTCUSDT declined 5.5% over 24 hours, closing near key support at 115.55.
• Volatility spiked mid-cycle, with a 19-cent range between 114.54–116.55.
• MACD turned negative, RSI entered oversold territory, suggesting possible near-term bounce.
• Volume surged 30% during 14:00–16:00 ET as price fell toward 115.50.
• A bearish engulfing pattern formed near 116.50, confirming downward bias.

Litecoin/Tether (LTCUSDT) opened at 116.76 on 2025-09-18 at 12:00 ET and dropped to a low of 114.54 on 2025-09-19 at 15:15 ET, before closing at 115.47 at 16:00 ET. The 24-hour high was 119.17, while the low was 114.54. Total volume traded over the period was 517,988.69 LTC, with a notional turnover of $60,135,384. The market exhibited a clear bearish bias, marked by a decisive break of the 50-period moving average and a failure to retest the 116.50 resistance.

Structure & Formations

The candlestick pattern near 116.50 showed a bearish engulfing formation, confirming the downward shift in sentiment. A doji formed near 115.55, signaling indecision and potential reversal. Key support levels emerged at 115.55, 115.20, and 114.70, all of which were tested during the afternoon. Resistance appears to be entrenched around 116.50 and 117.50, with the 20-period moving average sitting near 116.95 as a short-term ceiling.

Moving Averages

The 20-period and 50-period moving averages on the 15-minute chart diverged significantly in the latter half of the 24-hour period, with the 50-period line remaining above the 20-period, reinforcing the bearish signal. Daily MAs (50, 100, 200) were also in descending order, with the 50-day line near 117.30 acting as overhead resistance. The price closed below all three daily moving averages, suggesting a deeper correction could be in play if the support at 114.70 fails.

MACD & RSI

The MACD crossed into bearish territory mid-cycle and remained negative throughout, while the histogram showed a narrowing bearish divergence. The RSI hit 28 at 15:15 ET, entering oversold conditions, which could prompt short-covering or small rebounds. However, a failure to close above 116.00 could see RSI re-enter overbought territory on a new leg lower.

Bollinger Bands

Volatility expanded between 14:00 and 16:00 ET, with the price dropping below the lower band near 115.50. This expansion often precedes a reversal or a pullback toward the middle band, which currently resides at 116.20. The contraction in the bands earlier in the day hinted at a consolidation phase before the sell-off.

Volume & Turnover

Volume increased sharply during the 14:00–16:00 ET window as the price fell below 116.00, indicating strong bearish conviction. Turnover also surged during this period, confirming the bearish bias. However, a divergence between falling price and rising volume could signal exhaustion, especially if the 115.55 support holds.

Fibonacci Retracements

The recent 15-minute swing from 119.17 to 114.54 saw a retest of the 61.8% retracement level at 116.75, which failed. A 38.2% retracement at 117.30 acted as a resistance, with the 50% level at 116.85 showing mixed behavior. Daily retracement levels from the recent high of 119.17 to the low of 114.54 suggest potential bounce zones at 116.85 and 117.30, but bearish bias remains intact.

Backtest Hypothesis

A potential backtesting strategy could involve entering short positions when a bearish engulfing pattern forms on the 15-minute chart, particularly when confirmed by a break of the 50-period moving average and a MACD crossover into negative territory. Stops could be placed just above the high of the engulfing candle, with targets set at the next Fibonacci levels (e.g., 116.00 and 115.55). Given the recent volume surge and RSI entering oversold territory, this strategy would aim to capitalize on a pullback before a potential leg down, with an emphasis on risk management due to the volatile nature of the pair.