Litecoin recent price action has left traders at a crossroads as the cryptocurrency struggles to recover from a sharp rejection at $131. After an attempt to push higher, LTC failed to hold its momentum, turning $113 into a critical level that could shape its next move. With bullish hopes now hinging on this key support, can Litecoin bounce back, or is further downside inevitable?
The market is closely watching for signs of strength from buyers, as holding above this level will probably reignite upside momentum and set the stage for another rally. On the other hand, a breakdown could expose Litecoin to deeper losses, putting sellers in control.
With uncertainty looming, traders are bracing for LTC’s next big move. Let’s dive into the key technical levels and what they mean for LTC’s future.
LTC’s Rejection: What It Means For The Short-Term Trend
Following the rejection that halted bullish momentum at $131, Litecoin has continued to exhibit bearish tendencies, struggling to regain upward traction. The failure to break through this key resistance level has reinforced the dominance of sellers, leading to a pullback that now threatens the short-term optimistic outlook.Â
With $131 acting as a formidable barrier, buyers were unable to sustain the rally, ultimately giving way to increased selling pressure. Its rejection suggests that many traders are choosing to lock in profits, reducing demand and weakening bullish momentum. A decline in buying interest at higher levels indicates hesitation among investors, possibly due to broader market uncertainties or a lack of confidence in future performances.
Additionally, key technical indicators are flashing caution signals. The Relative Strength Index (RSI), which measures momentum, is trending lower and approaching the 50% threshold, a critical level that often determines whether bullish or bearish sentiment prevails.Â
A sustained drop below this level would reflect weakening buying strength and increasing selling pressure, reinforcing the potential for further downside movement.
What’s Next? Possible Scenarios For Litecoin Price
If the $113 support level holds strong, Litecoin may attract renewed buying interest, leading to a possible bounce. A surge in bullish momentum might allow LTC to reclaim lost ground and retest the $131 resistance level. Breaking above this barrier, supported by strong volume, might open the door for a rally toward $146.8 and beyond, signaling a continuation of the uptrend.
On the downside, if selling pressure intensifies and Litecoin falls below $113, the next major support levels to watch would be $97.9 and $89.7. Falling below these levels could trigger a deeper correction, putting LTC at risk of revisiting lower price zones.
