Litecoin (LTC) Downtrend Sparks Considerations: Excessive Danger, Low Reward?

• Litecoin’s latest unfavorable sentiment raises worries amongst crypto fanatics.
• Constructive indicators emerge, however considerations persist over Litecoin’s long-term prospects.
• Analyst Benjamin Cowen advises warning, citing Litecoin’s poor efficiency towards BTC.

Regardless of Litecoin (LTC) halving on August 2, unfavorable sentiment has prevailed, prompting alarm amongst crypto fanatics in latest weeks. As well as, bears have dominated within the final 24 hours, sending LTC costs down from a excessive of $65.74 to a low of $63.84 earlier than leveling out.

Litecoin (LTC) was buying and selling at $64.77 at press time, down 0.89% from its intra-day excessive. Consequently, Litecoin’s market cap dropped to $4,765,362,120, whereas its 24-hour buying and selling quantity fell to $252,653,192, a drop of 1.57% and 99.43%, respectively, demonstrating the dwindling confidence from traders.

LTC/USD 24-hour worth chart (supply: CoinMarketCap)

Crypto analyst Benjamin Cowen has lately sounded the alarm about Litecoin. In keeping with Cowen, the coin’s efficiency towards Bitcoin (BTC) has been dismal. Particularly, Litecoin has depreciated by 95% towards BTC since 2013.

Cowen means that Litecoin is a high-risk funding with very low reward, particularly given the financial backdrop of the Federal Reserve’s money-printing spree. Consequently, Cowen advises traders to remain away, as his Monte Carlo simulations present a 0.0% allocation to Litecoin yields the very best risk-adjusted returns.

LTC/USD Technical Evaluation

Nonetheless, some glimmers of hope emerge when inspecting the LTCUSD technical indicators. The Relative Power Index (RSI) on Litecoin’s 2-hour worth chart is rising and at present sits at 49.12. Though this degree is beneath 50, indicating promoting stress, it means that bearish momentum might wane.

Moreover, the Transferring Common Convergence Divergence (MACD) has moved above its sign line with a studying of -0.209937. The histogram additionally exhibits smaller inexperienced bars, indicating decreased promoting stress.

LTC/USD worth chart (supply: TradingView)

The Cash Move Index (MFI) factors upward at 48.39, suggesting that purchasing stress may improve. Therefore, these indicators may sign a shift in market sentiment in direction of bullishness.

Regardless of these constructive technical indicators, Cowen’s evaluation should be addressed. He factors out that Litecoin’s rug pull cycles result in decrease highs, making it a hazardous alternative for long-term traders. In addition to, LTC has struggled to interrupt previous its resistance, casting a shadow of doubt on its future efficiency.

In conclusion, whereas technical indicators might level in direction of a possible reversal in bearish sentiment, the long-term outlook stays bleak. Traders ought to weigh the risk-reward equation fastidiously earlier than diving in, particularly when analysts have raised vital considerations.

Disclaimer: The views, opinions, and data shared on this worth prediction are printed in good religion. Readers should do their analysis and due diligence. Any motion taken by the reader is strictly at their very own danger. Coin Version and its associates won’t be responsible for direct or oblique injury or loss.