The cryptocurrency market has slumped alongside US stock markets and commodities. The trigger for the sudden drop across the board seems to be caused by the accusation of big banks around the world being linked to illegal financial activities. The fear of a second lockdown in multiple countries across the globe as the battle to eradicate the virus is still ongoing also added more to the selling pressures pushing all asset prices lower.
The SCN30 Index dropped more than 8%, falling from 240 points to 222 points today. The biggest losers are coming from the DeFi sector such as Yearn.finance (YFI), Aave (LEND), Synthetix Network (SNX), and Maker (MKR).
In the past seven days, Bitcoin yielded -2.53% return, while the safe-haven asset like gold dropped similarly at -2.63%. The US stock indices Nasdaq adjusted -4.01% lower and the S&P 500 gave -3.53% return over the past week.
Litecoin (LTC) Technical Analysis
Litecoin (LTC) is one of the oldest alternative coins in the crypto space. LTC was created with speed in mind, as it aims to be the silver to Bitcoin’s gold. However, in 2020, LTC has shown only relatively bland price actions. With only 5.49% year-to-date (YTD), investors are moving away to the fresher and more exciting new projects, especially with DeFi tokens.
From the price technical perspective, LTC has now broken down from the symmetrical triangle pattern and well as all three daily EMAs. The closest support for LTC is now at $38, however, if selling pressure continues, we can look forward to the next stop at the yearly low at $24.80.
Bitcoin Cash (BCH) Technical Analysis
Bitcoin Cash (BCH) is a well-known Bitcoin core’s hard fork project with similar price actions to LTC. The YTD return for BCH is at 4.62% which is considered relatively low for cryptocurrency standards.
At the moment, BCH is being traded at $226 as the lower part of the symmetrical triangle provides support. Bouncing off this level indicates strength and can retrace back to test the previous support at $275. Breaking down from the triangle, however, can result in a test of the yearly’s low at $142.
Disclaimer: This analysis is the view of the author’s alone, and does not in any way represent trading advice. all traders should trade at their own risk.
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