Litecoin (LTC) has been caught in a consolidation phase between $100 and $140 for the past four months. However, this range-bound movement appears to have ended last week as LTC plummeted to its lowest daily close of the year at $94.62. The decline comes amid negative market sentiment following a key announcement from U.S. President Donald Trump.
Trump’s Crypto Reserve Excludes Litecoin
The recent downturn in Litecoin’s price may have been triggered by Trump’s announcement of a Bitcoin reserve, which included four other cryptocurrencies but notably excluded Litecoin. The absence of LTC from the White House-backed crypto list cast doubt over its long-term viability, prompting investors to offload their holdings.
With Litecoin falling below the critical $105 support level, analysts warn of further downside unless the price swiftly rebounds.
Technical Indicators Signal More Downside
Litecoin has been trading within an ascending parallel channel since June 2022, repeatedly testing both its resistance and support trendlines. However, LTC has failed to break through resistance in three attempts over the past four months. Each rejection (red icon) resulted in a downward push, leading to a breakdown from the $105 support zone last week.
Key technical indicators suggest bearish momentum is intensifying:
- Relative Strength Index (RSI): Below 50, signaling weakening bullish strength.
- Moving Average Convergence Divergence (MACD): A bearish crossover (black circle) reinforces the likelihood of continued downside.
If LTC fails to reclaim $100, the next major support zone sits between $65-$70, aligning with the midline of the ascending channel.
Potential Scenarios for LTC Price Action
- Bearish Scenario: If Litecoin closes below the channel’s midline, it could accelerate its drop toward $68, mirroring broader crypto market sell-offs.
- Bullish Reversal: A strong close above $100 and a breakout from the descending resistance trendline would signal renewed bullish momentum, potentially reversing the trend.
Also Read: Litecoin (LTC) Struggles Below $100, But Key Indicators Signal a Potential Rebound
For now, Litecoin remains in a precarious position, with bears in control. Unless LTC swiftly reclaims key resistance levels, investors should brace for further downside toward the $65-$70 range.
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. Coin Brief is not responsible for any financial losses.
