Here’s Why LTC Could Fall 9%

• Litecoin price is facing rejection from the 50-day EMA around $66, an imminent decline ahead.
• On-chain data paints a bearish picture as LTC’s long-short ratio is below one.
• A daily candlestick close above $68.80 would invalidate the bearish thesis.

Litecoin (LTC) price failed to close above the 50-day exponential moving average (EMA) around $66. At the time of writing, it is trading slightly down 1% at $61.96 on Friday. Moreover, LTC’s long-short ratio paints a bearish picture as it is below one.

Litecoin price is poised for a decline as it fails to close above the 50-EMA

Litecoin price is trading in a bearish pattern formed by connecting multiple highs and lows with a mid-April trendline. LTC is facing resistance around the 50-day EMA at $66.23, which roughly coincides with the upper trendline of the bearish pattern. Since Friday, it’s trading slightly under 1% at $61.96.

If the 50-day EMA near $66.23 holds as resistance, LTC could drop 9% to retest weekly support at $56.00.

The Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the daily chart are trading below their neutral levels of 50 and zero, respectively. Both indicators suggest weak momentum and an imminent bear trend on the horizon.

LTC/USDT Daily Chart

According to Coinglass data, LTC’s long-short ratio is 0.94. This report reflects bearish sentiment in the market, as the number below suggests that more traders anticipate the asset’s price to decline, strengthening Litecoin’s bearish outlook.

Long-short LTC ratio

Despite the bearish outlook shown by technical analysis and on-chain data, if Litecoin price produces a daily candlestick close above $68.80, it would invalidate the bearish thesis as it would show a higher high on the daily time frame. This could send the price of Litecoin up 11% to return to its July 29 high of $76.78.