In the past 24 hours, Litecoin (LTC) price has dropped nearly 12%. Now as of writing, it’s trading at $102.40 and market capitalization has dropped to $7.5 billion. The sharp drop happens as selling pressure builds, sending LTC’s RSI into oversold territory and Chaikin Money Flow (CMF) even further into negative territory.
If the trend of going down keeps going, LTC could test support at $92.5 and drop as low as $80, so attesting to its lowest price since November 2024. LTC might try to recover and aim for resistance levels at $106, $111, and maybe even $119.
LTC RSI Shows It Is Oversold
In just two days, the Litecoin Relative Strength Index (RSI) dropped significantly from 57.1 to 26.7. This extreme decline indicates that LTC has become oversold, resulting in significant selling pressure.
A drop this fast usually happens due to panic selling or a strong bearish trend. But since LTC is in oversold territory, a short-term bounce is also possible if buyers step in.
But an RSI this low also means that the asset may be about to make a short-term turnaround since oversold conditions often cause relief bounces.
RSI is a momentum indicator of the strength of most recent price fluctuations. It covers 0 to 100. If the reading is above 70, it means the market is overburdened and assets are probably subject to selling pressure. If the reading is less than 30, the market is oversold and there might be buying opportunities.
With LTC’s RSI at 26.7, means it is very close to being oversold and raises short-term bounce risk.
But if the trend toward falling prices continues and the RSI keeps going down, Litecoin might not be able to find support and could lose more value before it tries to recover.
Litecoin CMF Falls Below -0.20
The Chaikin Money Flow (CMF) for Litecoin’s CMF is now -0.21, down from 0.03 just two days ago. More money is leaving LTC than entering it, thus selling pressure rises. Earlier, CMF dropped momentarily to -0.26, at the lowest level since the middle of February, which further demoralized people.
When the CMF goes down, it means that more people are selling LTC and less money is coming into it.
This trend shows that investors are taking money out of Litecoin, which makes it hard for the price to keep going up in the short term.
CMF figures out how much buying and selling pressure there is by looking at changes in volume and price that range from -1 to 1.
When values are positive, it means that more money is flowing into an asset. When values are negative, it means that money is flowing out of an asset, which means that there is more pressure to sell.
LTC’s CMF is now -0.21, which means that sellers are still in charge. Unless buyers return in large numbers, LTC may have a hard time finding support.
The recent drop to -0.26 shows that capital is leaving the market at very high levels, which raises the risk of more losses unless people change their minds.
Can Litecoin Go Below $90?
If the price of Litecoin keeps going down, it could test the $92.5 support level, which has been a key area for buyers in the past. LTC’s price could fall as low as $80 if this level is lost. That would be the lowest it has been since November 2024.
Source: TradingView
Momentum indicators like RSI and CMF are showing bearish pressure, so prices could go down even more unless buyers step in to protect support.
But if LTC changes direction, it could get going again and go above $100. The first major resistance level is $106, which would stop it.
If LTC breaks $106, it may test $111. If buyers stay strong, it could even reach $119.
