Cryptocurrencies continue declining for several months now, as the crypto market has been engulfed by a bearish sentiment that is not ending. Profit-taking started this retreat in November, after the strong rally in October, so now it seems like the market is on one of those bearish periods before the bullish trend resumes again. Litecoin and Polkadot have been declining for several weeks, but now are facing moving averages that might act as support, so let’s see if they are showing any bullish reversing signs.

Litecoin Weekly Chart Analysis – Will the Decline End at the 100 Weekly SMA?

Litecoin has been declining for five straight weeks since it surged higher close to $300. It failed to hold the gains up there and the bearish momentum in the crypto market has helped push LTC lower. The 50 SMA (yellow) on the weekly chart has been broken, but the 100 SMA (green) seems to be holding as support.

It held during the first attempt two weeks ago, but the slide continues, so the price is heading toward that moving average again. If it holds, that would be a good place to buy LTC/USD . We are following the price action and if we see a bullish reversing pattern we will issue a buys signal, which you can find on our forex signals page.

The support at 4145 is under threat 

Litecoin Activity and Merchants Increasing

Crypto exchange Kraken commented on Litecoin last week, saying that the on-chain metrics have improved considerably. Nasdaq is also seeing the number of merchants where you can purchase with Litecoin increasing. Active addresses, as well as the activity, have been increasing fast recently.

The partnership with Visa which brought the Litecoin Visa debit card has helped increase transactions made in LTC. It has brought Litecoin closer to the mainstream. But, the sentiment remains bearish for Litecoin, which is facing the 100 weekly SMA at $140, while the next support level comes at $100 where the 100 SMA stands. We can’t decide now where the decline will end for Litecoin, but we will keep watching the charts and the price action and signal you when the opportunity arises.

Litecoin LTC Live Chart