A recent report highlighted that the daily transaction count on the Litecoin network has been pretty much the same as three months ago, standing at just over 100k. Similarly, the active address count has also remained unchanged, hovering around 300k, the same number it was back in February. This suggested a lack of growth in terms of users and investors for Litecoin. Combined with the fear in the market, the strong downtrend of Litecoin on the charts was rather unsurprising.

Source: LTC/USDT on TradingView

On the daily chart, the price has made a series of lower highs and lower lows going as far back as late November. In fact, since November, no swing high of the downtrend (lower highs) has been breached even once, which suggested strong bearish pressure.

The $105-$115 area has been important in the past, for example in July last year, when the price retested this area and rallied nearly as high as $300. In the past few months, no significant reaction was seen in this area except in January, when the price bounced from $110 to $140 but was quickly pushed lower.

In the past few weeks, the psychological $100 level has been lost to the bears. On lower timeframes, the $75 level had some significance. Due to the development of a hidden bearish divergence (white) between price and momentum, the $75-$80 area can be used to enter short positions.

Source: LTC/USDT on TradingView

In the past two weeks, the RSI has registered a higher high (white) while the price made a lower high. This hidden bearish divergence is a signal of a continuation of the downtrend, and the $60-$66 area could be retested once