Litecoin price remains under pressure as extreme fear remains the main emotion driving the crypto industry. As at the time of writing, it was at $61.41. For two weeks now, it has been trading below the crucial level of $65.00.
Fundamentals
The ongoing worries over contagion in the crypto industry is largely behind the decline observed in Litecoin price in recent sessions. Indeed, it is the same case with other cryptocurrencies such as Ethereum and Cardano.
Granted, the surge in mining difficulty and increase in the coin’s hashrate has bulls hopeful of its recovery. Litecoin’s hashrate, which highlights the security and health of the network, has risen from 517 TH/s on Friday to 537 TH/s on Monday.
Even so, the contagion risks originating from the collapse of FTX remain the key bearish driver of Litecoin price. Amid the worries that have defined activities within the broader crypto sector, Grayscale Bitcoin Trust’s shares have had their value drop by about 40%. Besides, the crypto fear & greed index is at an extreme fear level of 22.
Litecoin price prediction
As shown on its four-hour chart, Litecoin price has been under pressure in recent sessions. The decline attracted attention after the coin failed to attract enough buyers to sustain the rebounding that had the bulls retest the crucial resistance level at $64.16.
LTC/USD has since fallen below the 25 and 50-day exponential moving averages. Besides, its relative strength index (RSI) is below the neutral level of 50 at 46.
Seeing that Litecoin price formed a double top pattern, which is usually a bearish formation, I expect it to remain under pressure in the short term. In particular, the bears are looking to retest the support level at 58.19. Below that level, the bulls will be keen on defending the crucial support at 55.
On the flip side, a rebound may have the altcoin find resistance at 62.00. For this bearish thesis to be invalidated, there needs to be enough buyers to push it past 65.00.
