- The descending trendline will offer support above the key support area at $100.
- CFTC launches an investigation into several cryptocurrency exchanges due to possible price manipulation.
Litecoin price, like many other coins and altcoins dropped massively in the last 24 hours. For instance, LTC/USD plummeted from exchanging above $120 smashed past the support at $112 as well as $105. At the time of writing the crypto is trading lock-step with the bears holding ground at $107 while the bulls are fighting for support above $100.
Regulation in the industry is still in the sensitive phase especially in a market where the prices depend on speculation more than fundamentals. Last week the SEC chairman, Jay Clayton said that he will not amend the Securities Laws to include the virtual currencies. The same week culminated in an investigation by another regulator, CFTC into several cryptocurrency exchanges due to possible Bitcoin futures price manipulation.
Regulations aside, Litecoin price is trading at $106, but there is a bearish trend in progress. Indicators are showing that the bears have the control in the near-term. The moving averages gap continues to widen while the RSI is below the 40 mark and still pointing downwards. The descending trendline will offer support above the key support area at $100. The buyers are eyeing $112, but first, they must deal with the selling pressure at $107.
LTC/USD 2-hour chart