Despite positive developments around the token, Litecoin (LTC) erased the gains from earlier this week on Tuesday in a sudden change in the bullish sentiment.

What Positive Development?

The world’s 6^th largest currency, Litecoin (LTC), founded by Charlie Lee has been a fan favorite for a while. Most recently, the positive news included Abra starting to support LTC transfers for free. Abra is the only global app that allows you to buy, store, and invest in 25 cryptocurrencies in one place. Abra CEO and Founder, Bill Barhydt have recently announced that it is testing an immediate, free of Abra charges, a limitless transfer from other wallets.

In other news,  the New York regulators have given cryptocurrency exchange, Gemini, the green light to include Litecoin's LTC as well as Bitcoin Cash (BCH) and Zcash (ZEC) on its platform.

Despite these, Litecoin price crashed versus the US dollar on Tuesday, erasing Monday and Sunday’s gains.

LTC/USD Price Action

From a technical point of view, LTC/USD has formed three consecutive lower highs since it reached the all-time high level of $368 back in December 2017. The most recent high $183 was capped at the upper band of the daily Ichimoku cloud.

(Click on image to enlarge)

LTCUSD Technical Analysis

Another bearish sign on the Ichimoku Kinko Hyo is the Tenkan line crossing below the Kijun line on the daily chart. At the time of filming, the lower band of the cloud is acting as a support.

A break below this level could open doors for further drops towards $114, a level that has been tested multiple times since December. The pivot point is set at $165.