Litecoin’s price grapples with a downtrend line for the third time in nearly two years, signalling potential hurdles ahead.
A breach of the psychological $100 level might trigger a downward correction towards $90 or lower.
Conversely, a breakout above the descending trend line could pave the way towards $119 or beyond.
Litecoin (LTC) has been facing resistance from a descending trend line, resulting in a series of lower highs. This trend suggests a looming correction, particularly considering the current bearish sentiment in the Bitcoin (BTC) market.
Litecoin’s Current Situation
Litecoin witnessed a significant 69% decline between November 2021 and February 2022, followed by a slowdown in selling pressure. However, LTC has struggled to break above the descending trend line since then, with three distinct lower highs forming a notable pattern. Although LTC has surpassed the $100 mark recently, it has yet to breach the resistance offered by the trend line.
Potential Scenarios
Should Bitcoin’s outlook shift from a sideways trend to a correction, Litecoin’s price may follow suit, mirroring previous patterns. Investors should prepare for a potential breakdown below the $100 psychological level, possibly leading to a correction towards the $90 support level, marking a decline of approximately 13%.
However, a bounce back from the $90 support level could significantly present a favourable buying opportunity if Bitcoin’s outlook improves. Litecoin’s recovery could propel it towards the $119 mark in such a scenario. In a highly optimistic scenario, LTC might aim for a retest of the crucial $150 level or even target the psychological barrier of $200, though achieving this milestone might take time.
Nevertheless, it’s essential for investors to closely monitor Bitcoin’s price movements, as a sharper correction in BTC could potentially push Litecoin below the $90 support level, leading to a further decline towards the critical support level at $75.
