In the last 24 hours, the price of the altcoin Litecoin (LTC) has continued on a downward trend, remaining under the pressure of a bearish market. This trend aligns with altcoin’s Bollinger Bands indicator, which suggests that the negative market sentiment might persist for some time. While technical indicators generally tilt in favor of the bears, some investors anticipate a short-term recovery based on LTC’s performance in June in previous years.
Clear Signs of Decline in Litecoin’s Technical Indicators
The fall of Litecoin’s price below the 20-day moving average (middle band) in the Bollinger Bands is seen as a strong indicator of market negativity. This movement reveals that the overall market sentiment is in favor of sellers.
If the current trend continues and no factors emerge to cause a reversal, it is projected that the LTC price could drop further. According to the Bollinger Bands, this wave of decline could pull LTC down to the $83.19 level. However, for this scenario to be avoided, Litecoin buyers must establish a strong resistance.
The testing of the $88 support and a temporary recovery finding interest at this level indicates that some buyers are showing interest. However, the overall technical picture remains negative. The decline in volume also suggests limited participation in this downward movement.
Hope for a Recovery in Light of Historical Data
Litecoin’s current bleak outlook is moving in the opposite direction of the single-day 12% jump it recorded in May. During that period, despite delays by the SEC in approving spot Litecoin ETF applications, the LTC price managed to rise above $90.
Despite the recent fall, some Litecoin investors are expecting a recovery based on historical trends. Data shows that in past years, Litecoin recorded an average growth of 8.86% in June. Should history repeat itself, this average growth rate could bring the LTC coin price to approximately $97.17.
However, it should be remembered that historical performance is not a guarantee of future outcomes. The negativity of current technical indicators and overall market conditions creates uncertainty about achieving historical averages.
