The rout in the crypto market has resumed again this week after we saw a retrace up last week, which didn’t last. Stock markets have been bearish and
The rout in the crypto market has resumed again this week after we saw a retrace up last week, which didn’t last. Stock markets have been bearish and tech companies, in particular, have been tumbling during this time, as the coronavirus situation seems to be getting better with the easier omicron variant. So, there won’t be any more lockdowns and the work-from-home won’t be the future, so tech companies are falling.
Besides that, central banks are tightening up which is weighing as well. Cryptocurrencies have been suffering because of that as well and they are declining again today, with Litecoin and Solana heading for $100, but this makes them cheaper to buy.
Litecoin Daily Chart – MAs Turn Into Resistance for LTC
Litecoin continues to show weakness as it keeps sliding lower, despite the number of whales accumulating LTC for the longest streak since 2017. The MimbleWimble upgrade also should have helped improve the sentiment for LTC but the sentiment in the crypto market remains pretty bearish, which has been pulling LTC/USD down with it.
LTC/USD
Litecoin surged from $200 to $300 in early November, but since then the trend has been bearish, leading the crypto market during these bearish times in fact. Last week we saw a bullish retrace which pushed the price above the support/resistance level at $140, but the 50 SMA (yellow) turned into resistance and rejected the price. So, LTC is trading above $120 now heading for $100, which would be a decent place to look for longs.
Solana Daily Chart – SOL Breaks Below the 200 Daily SMA
Solana coin used to be one of the strongest cryptocurrencies until November, due to the number of applications being built on this network which increases the demand for the native token. But, the bearish sentiment in the crypto market which has accelerated due to the central banks starting to tighten up, which has been pulling Solana down with it.
Will the decline end at $100?
So, SOL/USD is trading around $100 now after having broken all support levels as well as the 200 SMA. The decline accelerated yesterday, after the breakout of the latest support zone around $130. Now, the price is heading for $100, which also seems like a good level to buy but the decline has been too fast and central banks are just starting to hike rates, so we will see how the price will react when it gets down there.
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