- Litecoin has seen a 9% price correction, testing the crucial $77 support level.
- Average Litecoin transactions now exceed $86,800, outpacing Bitcoin and Ethereum.
- RSI and MACD indicators signal increased bearish momentum for Litecoin.
Litecoin (LTC) has been undergoing a notable price correction over the last few days. After facing rejection at the 38.2% Fibonacci retracement level of $84.63 on December 10, the cryptocurrency saw a 9% drop, with six consecutive red daily candlesticks.
At press time, Litecoin is trading near the crucial support level of $77.19. The price has been unable to break through the resistance at $84.63 and is now retesting support levels to see if the downward trend will continue.
If the support at $77.19 fails to hold, the next key level to watch is $66.51. This potential downside could increase further if bearish momentum continues.
Bearish Momentum Confirmed by RSI and MACD Indicators
The technical indicators point to a continuation of bearish sentiment. Litecoin’s Relative Strength Index (RSI) is currently below the neutral level of 50, reading at 37, indicating that selling pressure is increasing. The RSI suggests a shift toward a negative price trend, with more downward movement possible.
Additionally, the Moving Average Convergence Divergence (MACD) has signaled a bearish crossover, a further indication that downward price action may continue. These two technical signals reinforce the case for caution as LTC struggles to maintain upward momentum.
Transaction Activity Remains Strong Despite Price Decline
Despite the bearish price trend, Litecoin has shown strong network activity. The average size of Litecoin transactions has increased significantly, now surpassing $86,800.Â
This places Litecoin ahead of Bitcoin and Ethereum in terms of average transaction value. Litecoin’s network is processing on-chain transfers valued at more than 250% of its market cap, a metric that signals continued usage and adoption.
This increase in transaction value highlights that the network’s activity remains robust, even as the price faces pressure. If Litecoin can maintain or further grow its transaction volume, it could support a potential recovery once the current price correction concludes.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
