Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red as the broader cryptocurrency market extends its losses.
Bitcoin is trading below $77,000, while Ethereum and XRP are trading at $2,119 and $1.38, respectively.
The bearish performance is now affecting other leading altcoins, with Litecoin one of the worst performers among the top 30 cryptocurrencies by market cap.
Litecoin remains bearish below the key invalidation level
Litecoin is down by 4% in the last 24 hours, making it one of the worst performers among the leading 30 cryptocurrencies by market cap.
At press time, LTC continues to trade below the key invalidation level near $72, keeping the bearish structure intact.
The current setup suggests LTC may still be developing its bearish wave, following a massive selloff from its recent $72 resistance level.
If the bearish impulse continues to unfold as expected, Litecoin could eventually revisit the major support region near the $40 area.
That zone may attract stronger buyer interest, as it aligns with the lower boundary of a larger long-term triangle formation that has contained price action over an extended period.
Retail interest in Litecoin has dropped drastically over the past few weeks.
Data obtained from CoinGlass reveals that Litecoin’s futures Open Interest (OI) now reads $339 million, down from $454 million recorded a week ago when Litecoin hit the $60 level.
Litecoin’s OI-Weighted Funding Rate has flipped negative and now reads -0.003%. The metric entering the negative zone indicates that the bears are currently in control.
Retailers are reducing their exposure to Litecoin as the broader cryptocurrency market lacks momentum at the moment.
The LTC/USD 4-hour chart is extremely bearish as Litecoin appears to have completed an ABC corrective recovery from the projected $60 resistance area before sellers regained control.
The recent decline below both the ascending channel support line and the key $54 level reinforces the view that the corrective rally has likely ended.
The decline below the $54 level increases the probability of another sell-off phase developing, as sellers are firmly in control of the market at the moment.
The momentum indicators are also bearish. The Relative Strength Index (RSI) reads 36, indicating a bearish stance as Litecoin approaches the oversold region.
Furthermore, the Moving Average Convergence Divergence (MACD) lines are also within the negative territory, adding further confluence to the bearish narrative.
If the selloff persists, LTC could drop below the April 2nd low of $51.41 in the near term.
A daily candle close below this level would expose lower support levels, with the February 6 low of $45 a strong demand zone.
While the broader outlook remains bearish, traders should still expect intermittent short-term corrective rebounds during the decline.
Hence, the pullbacks could see LTC retest the recent 4-hour swing high of $59.75 in the near term.
These temporary pullbacks may emerge as oversold conditions develop, but unless Litecoin reclaims major resistance zones, the overall structure continues to favor further downside in the near term.
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