Litecoin (LTC) Drops Below $50 After Consistent Bearish Squeeze

The price of Litecoin (LTC) is currently negative after a significant amount of liquidation. Monday’s data from Coingecko indicates that the price of LTC has decreased by 1.4% over the past week and is currently trading at $49.98.

LTC had previously achieved support at $49.68, but was unable to maintain the levels and experienced a price decline. The LTC/USD pair is currently encountering resistance at $50.85; a move over this level would target $51.50.

The one-day price chart for Litcoin indicates an upward trend that may persist for some time. However, it may not be steady enough to overcome the market’s significant bearish pressure.

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Litecoin Up 18% Despite Bearish Pressure

In spite of this, LTC has gained 18% in the past seven days. In the previous several days, the Litecoin market has been highly volatile, with values surging and then falling rapidly.

After failing to maintain the $52 level and facing severe selling pressure, LTC prices began to retreat. The cryptocurrency’s market capitalization is approximately $3.5 billion, and its 24-hour trading volume is $373 million.

At $55.62, which is a resistance level, the LTC/USD pair established a new all-time high on Friday. This level has been retraced, and the price is currently trading below $55.50. If the price continues to decline, immediate support may be found at $54.00.

LTC ROI Down Over Past 12 Months

Aside from its functionality, LTC is now of little benefit to investors because it does not generate a significant profit for its holders. The coin’s return on investment over the past year has decreased dramatically, with most statistics falling into the red zone.

Furthermore, of the millions of investors that buy LTC, only a few hundred thousand are still profitable. These investors purchased their supply at a price below the altcoin’s current market value. These investors represent only 13% of all LTC holdings.

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Even though bears are currently trying to sustain momentum, they have succeeded in driving the price of LTC below the $50 threshold.

Meanwhile, given that Litecoin’s market value is also at an all-time low, it is not unexpected that new investors are avoiding the asset. Despite this, LTC’s existing community will continue to patronize LTC, giving the coin a good chance of mounting a recovery.

Featured image from NDTV.com, chart from TradingView.com