Selling Pressure Drives Litecoin Down 12%, Testing Support Levels

Litecoin (LTC) has fallen more than 12% in the past 24 hours. Its price now hovers near $100. The cryptocurrency's market capitalization has contracted to $7.5 billion during the selloff.

Technical indicators suggest the digital asset has reached oversold conditions. LTC's Relative Strength Index (RSI) has plunged into oversold territory. The Chaikin Money Flow (CMF) has simultaneously moved deeper into negative levels. These metrics indicate intensifying selling pressure across trading platforms.

If current downward momentum continues, analysts predict LTC could test support at $92.50. A break below this level could send prices toward $80, which would mark Litecoin's lowest valuation since November 2024. The technical outlook remains bearish in the immediate term.

"Such a rapid drop often reflects panic selling or a strong bearish trend," noted market observers tracking the cryptocurrency. The RSI reading of 26.7 represents a dramatic decline from 57.1 recorded just two days ago. This technical indicator measures the magnitude of recent price changes on a scale of 0 to 100.

RSI readings below 30 typically signal oversold conditions. This suggests potential buying opportunities may emerge. The current reading increases the probability of a short-term price bounce, though continued bearish pressure could extend losses before any recovery materializes.

The CMF indicator has fallen to -0.21, down from 0.03 two days prior. It briefly touched -0.26, reaching its lowest level since mid-February. CMF measures buying and selling pressure by analyzing volume and price movements on a scale from -1 to 1. Negative values indicate distribution phases with increased selling.

"A declining CMF suggests that selling pressure is increasing, with more capital flowing out of LTC than into it," according to technical analysis. The negative reading signals investors pulling liquidity from Litecoin markets, complicating potential short-term price rebounds.

Should Litecoin reverse its downtrend, it faces immediate resistance at $106. Breaking above this level could lead to tests of $111 and potentially $119 if buying momentum strengthens. However, technical indicators currently favor sellers unless a significant shift in market sentiment occurs.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.