Litecoin (LTC/USD) prices have seen heavy volatility over the past three weeks. Following a series of all-time highs, prices are down more than 30% in a synchronized global collapse instigated by China’s ICO ban.

LTC/USD Correction Wipes Out Early-September Gains

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The LTC/USD peaked at $90.90 on Sept. 2, according to CoinMarketCap. At $90 a pop, litecoin’s market cap approached $4.8 billion as 24-hour volume peaked at more than $1.8 billion. Prices are down more than $30 over the past two weeks to reach the current level of $61.00. The token is trading within a narrow range at the start of Thursday’s session.

To be frank, litecoin was severely overbought at the start of the September following a month of lateral moves. The Relative Strength Index has since moderated below 50.00. More correction is expected in the coming weeks, as prices target the corresponding Fibonacci retracement levels between $60.00 and $51.00.

Crypto Meltdown Shaves $40 Billion Off Market Value

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The major coins have declined sharply this month after Chinese regulators banned initial coin offerings (ICO), the crowdsourcing model that has taken the world by storm. China is said to be mounting a broader attack on the digital currency market, including an all-out ban on bitcoin exchanges.

The ban will only apply to trading of cryptocurrencies on exchanges, leaving OTC markets unaffected. Trading volume is expected to fall dramatically as a result, especially given China’s out-sized role in the crypto market. The country accounts for about 23% of bitcoin trades. It is also home to some of the world’s biggest bitcoin miners.

Digital currency is a contentious topic for Chinese policymakers, who have zero tolerance for any activity that undermines stability. The People’s Bank of China has intervened in the market on several occasions to evaluate the risks. For some analysts, the latest crackdown is a backhanded attempt at controlling capital flight.