3 Reasons Litecoin Price Could Crash 20% This Week

Litecoin price continued its downtrend and tested the 100-day moving average as cryptocurrencies plunged. LTC, which has already fallen by 35% from its highest level this year, has more room to fall as the odds of a spot LTC ETF fell on Polymarket, active users dropped, and the coin formed a head-and-shoulders pattern. Litecoin Price Could Fall As Odds Of LTC ETF Approval Falls One catalyst for the ongoing Litecoin price crash is the fact that many Polymarket don’t expect a spot ETF to be approved this week. One poll with $54,000 in assets has predicted that odds of the ETF being approved by July 31 have fallen to 24% by July 31st. Another poll with $8,000 has a 42% chance of the fund being approved. Only one company, Canary Capital has applied for a spot LTC ETF , but the number could increase if the SEC becomes friendlier to the crypto industry. In a recent note, Eric Balchunas, the head of ETF strategy at Bloomberg has predicted that the SEC will approve a spot ETF since LTC is a Bitcoin Fork. LTC ETF Approval Odds LTC Transactions Are Falling Meanwhile, on-chain data shows that Litecoin’s activity is falling as the price continues falling and sentiment in the crypto industry worsens. According to Bit Info Charts , the number of Litecoin transactions have fallen to the lowest level since 2023. Litecoin Sent From Addresses 2 Another data shows that Litecoin’s hash rate has fallen after reaching a record high of 1.95 Phash/s earlier this month. It dropped to 1.71 Phash/s, a sign that the network is not seeing a lot of activity. The average transaction fee in the Litecoin’s network has also been in a downtrend this month. LTC Price Has Formed A Small H&S Pattern The other reason why the Litecoin price could fall sharply this week is that it has formed a small head and shoulders pattern. This pattern comprises a head, which is at around $117, two shoulders, and a neckline, which is at $96.78. The H&S pattern is one of the most bearish signs in the market. Litecoin has dropped below the 50-day moving average and found support at the 100 EMA level. It has also moved below the key support at $112.67, the highest swing in March last year. Therefore, a drop below the 100-day moving average will point to more downside of the LTC value , with the initial support being at $86.50, its lowest swing on December 20th, which is about 10% below the current level. A break below that level will bring the next support to $76.65. This is its highest point on July 26 and 20% below the present price. Litecoin Price Chart The bearish LTC price forecast will become invalid if the coin rises above the resistance level at $112.67. The post 3 Reasons Litecoin Price Could Crash 20% This Week appeared first on CoinGape .