Litecoin drops amid oversold RSI reading of 35.45: weekly review

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Litecoin falls 6.80% this week

Highlights

Litecoin remains entrenched in a bearish trend, trading decisively below key medium- and long-term moving averages.
Momentum indicators, including MACD, ADX, and various oscillators, unanimously signal strong seller control with no signs of reversal.
Next week's expected range is $48.60 to $53.64, with a further decline more likely than any meaningful price recovery.

Core upgrade amid low volume as broader crypto market stays subdued

Litecoin completed a core software upgrade on May 7, addressing critical privacy layer flaws. This development took place during a period of low trading volume in the broader cryptocurrency market. No other directly related tokenomic, regulatory, or ecosystem news items emerged for Litecoin during the week.

Strong bearish momentum confirmed by weekly technical indicator alignment

Weekly technical indicators paint a negative outlook, with Litecoin maintaining position below all primary W1 moving averages. Momentum remains firmly bearish as the MACD delivers a Strong Sell signal and the ADX also supports a Sell, highlighting active selling pressure. The weekly RSI is oversold at 35.45, the CCI sits at -80.13, and the Stochastic RSI trends lower, indicating persistent weakness. Weekly volatility stands at 6.04%, and the asset is trading at the very bottom of its 7-day range, with no sign of bullish divergence.

Range-bound outlook as downside risk persists for coming week

Over the next 7 days, Litecoin is expected to fluctuate within a range of $48.60 to $53.64 based on current weekly volatility and technical levels. The probability of a sustained price recovery remains low, as none of the principal W1 indicators signal a bullish reversal, and the technical setup favors further downside. If selling intensifies, a move below $48.60 could open the way to new annual lows. A potential bullish scenario would require a close above $53.64, though this remains unlikely given current momentum.

Anton Kharitonov, expert at Traders Union, notes that Litecoin remained under firm bearish pressure this week. Persistent declines kept LTC well below all its primary weekly moving averages, confirming strong downward momentum. Kharitonov believes the recent core upgrade did little to shift investor sentiment, especially amid subdued trading activity and lack of bullish signals across key indicators. Technicals show selling pressure and oversold conditions, with no clear sign of reversal. The baseline scenario remains a low probability of price recovery, with risks of new lows if sellers gain traction. "As long as Litecoin trades beneath $53.64 with momentum this weak, I see little reason to expect a meaningful rebound this week."

Earlier, analysts noted that Litecoin faced persistent bearish pressure and weak technical momentum, highlighting vulnerability to further declines. The latest data reinforces this negative outlook, with the current trend favoring continued weakness and making $48.60 a critical level for traders to monitor for potential downside breakouts.

Source of Data: LTC Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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