Litecoin (LTC) Faces Death Cross Warning

It is no secret that Litecoin (LTC) has been struggling lately, and the signals on the charts are not looking much better. A number of key indicators suggest that the price of LTC might be on the brink of a big drop, and one in particular stands out: the approaching death cross. But what does that mean for Litecoin, and what could it spell for its future?For the past two weeks, Litecoin has found itself stuck in a frustrating pattern, unable to break through its 200-day moving average on the daily chart. That’s right: for 14 days in a row, LTC has failed to break above this important technical level. In the meantime, the price has been steadily printing higher highs and higher lows, creating a sort of paradox. TradingView">The price action should have been bullish, yet it was not able to break through that critical resistance. This, as it turns out, could be the formation of a bear flag pattern - an ominous technical signal that often suggests further declines.Ultra bearish puzzleIf that’s not enough, the next major concern is the 23-day moving average. This shorter-term moving average is now on track to cross below the 200-day moving average, setting up what traders refer to as a death cross. Simply put, a death cross is a bearish signal that occurs when a short-term moving average falls below a longer-term one, indicating that momentum is shifting to the downside. Historically, this has often been a precursor to major price drops.In combination, these signals are starting to paint a worrying picture for Litecoin. The failure to surpass key resistance, the bear flag formation and the impending death cross: put it all together, and you have got a recipe for potential trouble. If Litecoin follows the script, we could be looking at a drop of around 32%, similar to what happened back in March. That would put LTC somewhere in the $70-$60 range which, let’s be honest, is not where anyone wants to see it.