Double-digit downfalls for digital currencies is the name of the game today with no holdouts nor standouts. What is going on? Here are 5 reasons for the crypto-crash.
Litecoin, LTC/USD, is down over 22%, suffering one of the biggest downfalls, competing only with bitcoin cash.
Here is the chart showing the big fall, followed by a description of the technical levels.
LTC/USD support lines
Litecoin is currently struggling to hold onto the $240 level which is important as it was a swing low last week, basically a stepping stone on the way up before the crash.
Earlier, LTC/USD already fell to lower ground at $156, but bounced quickly from there. That $156 line is not totally coincidental: it is a strong line of support after working as a resistance line in early December. Back then, it capped a period of range trading.
At the bottom of that range, we find $121.50. The last touch of that line saw a gradual climb and then a big breakout to the upside.
Closeby, we find $106, capped the pair during a longer period of time beginning in mid-November. After LTCUSD cleared $106, it never looked back.
The last line, for now, is way down at $69. This low level was the bottom of the range and was last traded at back in late November.
LTC/USD resistance lines
If the battle over $240 is won by litecoin, the next resistance line only $319. It was the initial swing high that the digital currency tackled before touching the sky. It also capped it on recovery attempts.
And further above, we find only the record high of $370, reached earlier this week, a line that preceded the crash.
What if litecoin were to go higher? The round numbers of $400 and $500 are the next levels to watch.
More: On the Bitcoin Block: 7 Myths about trading cryptocurrencies
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