Litecoin [LTC] Heading South: Is a Resumption of the Downtrend Ahead?

• Litecoin [LTC] saw its halving occur on 2 August.
• The asset has lost significant levels of support stretching back to July, and the downtrend has not abated in August.
• There was an FVG on the H4 chart that extended from $65.97 to $72.79 that Litecoin left behind during its rapid descent on 17 August.

Litecoin: A Minor Bounce Before Further Losses

Halving

Litecoin [LTC] saw its halving occur on 2 August, which led to a rise in hash rate and mining difficulty, as well as a decrease in mining reward.

Bearish Market Structure & Momentum

On the 4-hour chart, Litecoin noted a firm bearish market structure and momentum as higher timeframe support zones were convincingly breached, paving the way for further losses.

Price Chart Analysis

The asset has lost significant levels of support stretching back to July, and the downtrend has not abated in August. Fibonacci retracement levels suggest that since the 78.6% level based on the move upward was broken, it is likely that LTC will continue downward to the 23.6% extension level southward at $60.23.

Fair Value Gap & Open Interest Chart

Moreover, there was an FVG on the H4 chart that extended from $65.97 to $72.79 that Litecoin left behind during its rapid descent on 17 August; thus, a bounce towards $72 was possible before prices were forced lower once again. The Open Interest chart showed sidelined speculators as funding rates remained negative after LTC’s steep fall last week.

Conclusion

It appears likely that Litecoin might resume its downtrend after experiencing a minor bounce due to factors such as halving and bearish market structure & momentum, as well as technical indicators such as FVG and Open Interest chart being present in favor of this scenario