- Litecoin price has formed a death cross on the daily chart.
- The fear and greed index has moved to the neutral level.
- Litecoin has joined other cryptocurrencies in the sell-off.
Litecoin price sell-off intensified as a somber mood engulfed the financial market, pushing global bond yields to a 15-year high. The coin retreated to a low of $72.60, the lowest level since June 15th. It has plunged by more than 35% from the highest level this year.
Fear and greed index falls
Litecoin’s sell-off has happened in line with the performance of other cryptocurrencies like Cardano, Ethereum, and Bitcoin. American equities have also retreated by more than 5% from their highest level this year.
Popular stocks have also joined the decline. For example, Tesla stock price has dropped by more than 25% from the highest level in July. Nvidia, Apple, and even Microsoft have been in a downward trend.
On the other hand, bond yields have jumped to the highest level in more than 15 years. The US 30-year rate surged to 4,.42%, the highest point since 2011. Bond yields move inversely to prices.
At the same time, the fear and greed index has moved from the extreme greed area. According to CNN, the index has moved to the neutral level of 50, down from last month’s high of over 80.
Market momentum, stock price strength, and stock price breadth have moved to the greed area while put and call options has dropped to the fear area. Market volatility, which is measured by the VIX index has moved to the extreme fear area.
The crypto fear and greed index has also moved to the neutral point of 50, where it has remained in the past 30 days. In most periods, cryptocurrencies like Litecoin and Bitcoin tend to underperform when the index is not in the greed zone.
Litecoin price prediction
The daily chart shows that the LTC price has been in a strong bearish trend in the past few weeks. This decline happened before Litecoin’s halving event earlier this month. On the daily chart, the coin is about to form a death cross, where the 200-day and 50-day moving averages make a crossover.
Litecoin is also approaching the key support level at $71.05, the lowest level on June 14th. Therefore, a move below that level will see it drop to the next level at $65.27, the lowest point on March 11th.
