Litecoin price remained under pressure on Sunday, May 17, as buyers failed to build stronger momentum. Analysts pointed to weakening short-term structure, lower market participation, and a possible breakdown setup if sellers gain control near the base zone.
As of writing, Litecoin (LTC) is trading at $56.34, marking an increase of 0.75% in a day. The trading volume is down by 38.86% and is currently standing at $189.68 million. Over the last week, the LTC coin price has declined by 3.48%, according to CoinMarketCap.
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Litecoin Price Faces Breakdown Risk Near Neckline
Analyst Alpha Crypto Signal highlighted that LTC is forming a rounding top pattern after failing to stay above local highs. The analyst pointed out that the token is converging towards the support level, and the moving averages of the short time frame have less bullish control on the chart.
The same outlook placed focus on the base of the structure. A clean break below that neckline area, with volume confirmation, could activate the rounding top setup and allow further downside continuation if sellers take control near key support levels.
Moreover, another analyst, CryptoWZRD, revealed that LTC is barely bearish on the daily chart, but the intraday chart remains in a range. The analyst noted that a break below $56.25 could signal weakness, but a move above could extend a range in the market for the time being.
Futures Volume Falls as Open Interest Slips
According to CoinGlass data, the future volume dipped by 46.97% to $204.41 million, whereas open interest decreased by 0.90% to $354.77 million. The OI-weighted funding rate was 0.0019%, indicating low market confidence among leveraged traders.
Litecoin Price Stays Below Key EMA Levels
TradingView data shows that the Litecoin price is currently trading around $56.36 on the daily chart. The 20-day EMA was at $56.89, with the 50-day EMA at $56.38 and LTC just below both short-term EMAs and within a tight resistance zone.
Longer-term EMA levels were still above the prevailing prices. The 100-day EMA is at $58.82, while the 200-day EMA is at $67.05, indicating resistance in the price of Litecoin before the price can make a broader recovery on the daily time frame.
The Relative Strength Index (RSI) charts also showed a period of less momentum in the recent pullback. The 14-day RSI stood at 48.64, while the RSI moving average was 56.95, placing the indicator below its signal line and away from the upper zone in daily momentum data.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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