- LTC/USD touched the lowest level since September 15.
- Critical support lies with $50.00.
Litecoin, the 7th largest digital asset with a market value of $3B, tumbled as much as 10 percent to the lowest since September 15, following the lead of Bitcoin. LTC/USD is changing hands at $51.63, having recovered from early Asian low of $50.52. The coin’s average daily trading volumes are set at $374M.
What’s going on
While no clear reason for the recent crypto sell-off is readily available, some experts believe, that digital assets are moving in sync with traditional financial markets as the collapse of digital coins coincided with the global sell-off in equities.
“The global sell-off in equities has indeed spilled over to the crypto space. The days of crypto being the safe haven play and having a high degree of detachment from the rest of the world are seemingly diminishing,” Ryan Rabaglia, head of trading with cryptocurrency dealing firm OSL in Hong Kon, explained as cited by Bloomberg.
The expert believes that cryptocurrency space assimilates with traditional assets due to increased institutional adoption. While the sustainability of this trend is questionable, crypto has lost its safe-haven status as digital coins are no longer bought amid risk aversion.
Litecoin’s technical picture
The local support for LTC/USD is produced by psychological $51.00. A sustainable movement below this level will trigger more losses with the initial aim at $50.52 (Asian low) and critical $50.00, where a fresh buying interest is likely to appear.
On the upside, the recovery is capped by $52.80-$53.00 (congestion zone). Once it is cleared, the recovery may be extended towards $54.00 (SMA50, 15-min).
LTC/USD, 4-hour chart