Litecoin struggles at key support level amid bearish trends: What now?

• Litecoin’s price dropped amid a market-wide selloff.
• Metrics indicated mixed signals for LTC.

Litecoin [LTC] has witnessed significant downward pressure in recent times. The altcoin’s price has dipped by 2.18% in the last 24 hours, trading at $62.87. 

Over the last seven days, LTC has recorded a more substantial decline of 5.23%. This price action has also resulted in a 5.17% drop in Litecoin’s market capitalization, which stood at $4.71 billion at press time.

Despite the bearish price movement, the trading volume for Litecoin has experienced a 17.20% rise over the last 24 hours to reach $303.13 million, as indicated by CoinMarketCap data.

This increased trading activity indicates spikes in market volatility and could potentially foreshadow further price swings.

Support level at the edge

Litecoin was trading above a critical long-term trendline at press time, something which has provided support in the past. The support level appeared to be around $61.46, which has historically acted as a strong floor. 

If this support level is breached, LTC could dip further to test the trendline support.

AT the time of writing, Litecoin was showing a descending triangle pattern, which is generally viewed as bearish. This suggested that further downside may be on the horizon if support breaks at current levels.

Moreover, the Stochastic RSI made a bearish crossover, suggesting a further continuation of the downtrend.

Bearish sentiment among Litecoin investors

The on-chain data for Litecoin painted a concerning picture, with only 18% of LTC holders in profit at press time. This suggested a bearish sentiment among market participants.

Thus, there could be increased selling pressure as some investors looked to cut their losses.

Bullish glimmer in liquidations

Despite the aforementioned bearish sentiments, the liquidation heatmap data for Litecoin showed a bullish bias, with 1.44 million LTC pooled at the $580 price level.

This implies that there was still a significant amount of buy-side liquidity above these prices that could act as a barrier against additional downturns.

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Uncertain outlook on LTC

The outlook for Litecoin in the coming quarters appeared somewhat uncertain, given current market conditions.

The combination of bearish technical patterns, high token concentration, and the likelihood of more sell-offs might continue to weigh on its performance.