- Litecoin is holding above $80 but must break $88–$90 to confirm a reversal.
- AAVE shows short-term upside potential despite a weak broader trend.
- Volume and Bitcoin’s direction remain critical for both assets.
Litecoin (LTC) and AAVE are back on traders’ radar as both assets attempt to stabilize after extended periods of weakness. While short-term signals hint at potential upside, neither market has fully confirmed a sustained bullish reversal. For now, momentum is improving — but caution remains the dominant theme.
Litecoin Holds Key Support as Bulls Test Resistance
Litecoin ended the latest session trading near $83.64, maintaining its position above a crucial support zone around $80–$82. This area has become a near-term battleground, with buyers stepping in to prevent deeper pullbacks.
Technical indicators suggest improving momentum. The RSI near 57 signals growing buying pressure, while the MACD is approaching a bullish crossover, often an early indication of trend recovery. Importantly, LTC is forming higher lows — a constructive sign — though price remains capped below the $88–$90 resistance range.
A daily close above $85–$88 could open the door toward $95–$96, with mid-term projections extending toward $112 if volume confirms the move. However, Litecoin is still trading below its major moving averages between $88 and $94, keeping the broader trend cautious. A breakdown below $80 would weaken the bullish case and raise the risk of a move toward the mid-$70s.
AAVE Rebounds, but Broader Trend Stays Fragile
AAVE is showing renewed activity, currently trading around $171, outperforming many DeFi peers in the short term. Forecast models point to a potential rally toward $196 in the coming days, offering traders a possible 18% upside — provided resistance levels give way.
Despite the bounce, AAVE’s larger trend remains under pressure. The token is still down sharply over the past year, reflecting sustained selling and risk-off sentiment across DeFi. Market sentiment remains tilted toward fear, with a majority of indicators flashing bearish.
That said, AAVE is holding above its 50-day and 200-day moving averages, suggesting some underlying structural support. The RSI near 49 places the token in neutral territory, leaving room for either continuation or rejection. A clean break above resistance between $171–$173 could accelerate momentum toward higher targets, while failure may send price back toward the $160 support zone.
Market Outlook: Opportunity with Conditions
Both Litecoin and AAVE are attempting to turn the corner, but neither has fully escaped broader market uncertainty. Bitcoin’s direction, trading volume, and macro sentiment will likely dictate whether these early signals turn into sustained trends.
For traders, the setups offer opportunity — but only with disciplined risk management.
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Litecoin is defending key support while pressing against critical resistance, and AAVE is rebounding amid lingering bearish sentiment. The technical groundwork for upside is forming, but confirmation is still needed. Until major resistance levels are broken, these moves remain tactical rather than trend-defining.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
