Litecoin Dropped Below $50 After Strong Bearish Squeeze

Litecoin dropped below $50 as the price is in negative territory after a huge amount of liquidation so let’s have a closer look at today’s latest Litecoin news.

The data from Coingecko shows that the LTC price decreased by 1.4% over the past week and it is now trading near $49.98. Litecoin dropped below $50 and hit support near $49.68 but was unable to maintain these levels after a price decline. The LTC/USD pair is now encountering resistance at $50.85 with a move over this level could target $51.50. The daily charts for LTC indicate an upward trend that can persist for some time but it might not be steady enough to overcome the significant bearish pressure.

In the past few days, the LTC market was highly volatile with the values surging and falling fast. After failing to maintain the $52 level and facing severe selling pressures and the LTC prices started to retreat. The crypto market cap is set at $3.5 billion with its 24-hour trading volume set at $373 million. At the $55.62 level, the pair is establishing a new high and this resistance level has been retraced but the price is trading below $55.50 and if it continues to drop, immediate support could be found at $54.00.

Aside from the functionality, LTC is not benefiting from investors because it doesn’t generate a huge profit for the holders. The coin’s return on investment in the past year dropped dramatically with most statistics falling in the red zone. Out of millions of investors that purchase LTC, only a few are still profitable. The investors bought their supply at a price below the altcoin market value and these investors only represent 31% of the LTC holdings.

Even though the bears are trying to sustain the momentum, they succeeded in driving the price of LTC below $50. in the meantime, given the LTC market value is at an all-time low, it is not unexpected that the new investors are avoiding the asset but the LTC existing community will continue patronizing LTC given the chance of recovery.

As recently reported, The major exchanges in South Korea delisted Litecoin and other privacy coins as well after flagging the privacy-focused MimbleWimble upgrade. In the public announcement, Upbit cited the Act on the Reporting and the USe of Specific Financial Transaction Information that prohibits anonymous transactions as the key reason for ending support for LTC. The delisting came in light of the MWEB upgrade which made LTC transactions private and hid some of the key identifiers. The upgrade was released earlier and two years after the first proposal.