- Litecoin price sees a seismic shift from bulls to bears in the overweighting trade.
- LTC is in search of support that could trigger a bounce.
- Expect to see roughly another 10% of devaluation before support is met.
Litecoin (LTC) price slides over 4% intraday as the US session is getting up to speed after a prolonged hiatus due to the Thanksgiving holiday and long weekend. Litecoin printed a staggering performance last week with a 28% appreciation and now sees those gains evaporate a little bit as the Relative Strength Index (RSI) had spun into the overbought area too quickly. As the RSI is now coming out of that overbought stress element, more downside looks needed to cool down the price and attract lower-level buyers.
LTC sees that what goes around comes around
Litecoin price slid lower this morning and paired back some more gains that it booked last week in its trading frenzy, which printed +28% in just two trading days. The RSI shot immediately into the overbought territory with that big two-day win. This measurement points to the fact that there has already been too much buying at hand and that the price will probably start to slow down or even fall as experienced traders will know that there is little incentive to buy in again as gains will be rather limited.
LTC became, in that sense, a self-fulfilling prophecy, and the current slide thus should not come with any surprises. Expect the dip to continue a little bit further, roughly 10% toward $65.08, before finally buyers step back in again. That level was pivotal before and was met with plenty of false breakouts before it could break and close above it. So the question is now: will it hold as support?
LTC/USD daily chart
With Thanksgiving out of the way, all eyes will be on the Fed speakers and the FOMC meeting in two weeks. With the blackout period nearing for these same Fed members to still communicate to the markets, expect to see more dovish comments that could fire up the stock markets in the US. That environmental risk should be good for LTC and see it rally back toward $84 to test the high of November.
