Key Takeaways
Litecoin has been struggling to gain momentum despite multiple attempts to break out.
Over the past months, LTC has tested a key diagonal resistance but failed to secure a decisive move higher.
Technical indicators now suggest caution as bearish signals start to emerge across timeframes.
With critical support levels being retested, the main question is whether Litecoin’s bullish cycle has run its course or if another push higher is still possible.
The Litecoin price made five unsuccessful breakout attempts (red icons) above a diagonal resistance trend line (dashed) since December 2024.
Litecoin seemed to break out last week, but failed to clear the $135 horizontal resistance area.
Instead, it created a bearish engulfing candlestick and briefly fell to a low of $52.71.
In the weekly time frame, this was the longest-ever lower wick length at 47%, surpassing the March 2020 “Covid” crash, which had a length of 33% (green icons).
Another essential factor to consider is that LTC has reached the long-term ascending support trend line that has been in place since June 2022.
Therefore, the bullish trend technically remains intact as long as Litecoin does not close below the trend line, which would provide bearish confirmation.
However, there is no support until Litecoin’s price hits the trend line at $70.

Momentum indicators are gradually turning bearish. The Relative Strength Index (RSI) is below 50, and the Moving Average Convergence/Divergence (MACD) made a bearish cross (black circle).
Hence, a Litecoin breakout is unlikely. Examining a lower time frame is necessary to determine whether the LTC price will fall to $70 or if it will find support above this level.
The long-term chart does offer some hope that the Litecoin trend is bullish, although more confirmation is needed if this is indeed the case, as the count is close to being invalidated.
The remaining bullish count suggests that the Litecoin price completed wave E of an A-B-C-D-E (red) in a massive, seven-year symmetrical triangle pattern.

If this is the case, Litecoin will consolidate inside the triangle for several months before eventually breaking out.
In that case, the LTC price will hit $300 before any major retracement.
However, the price action disagrees, since the movement that began in June 2022 looks corrective.
On top of an ascending parallel channel, the movement is extremely choppy, with significant overlap between the highs and lows.

While the price of Litecoin trades in the upper portion of the channel, a breakdown below its midline could send the price tumbling to new lows.
Additionally, a breakdown from the channel could potentially take Litecoin to its bear market low of $43 and possibly trigger a further decline.
The Litecoin price has declined against Bitcoin since 2014, losing 98% of its value.
Last week’s crypto liquidation event led to a new all-time low of ₿0.0005, before the price bounced and created a long lower wick.

Although Litecoin has closed above its main horizontal support area at ₿0.00080, the trend of lower highs is concerning.
While the bullish divergences in the RSI and MACD are positive signs, they have failed to initiate upward movements in the past, reducing the likelihood that they will do so in the future.
If Litecoin breaks down below ₿0.00080, another massive bearish trend could follow.
Litecoin’s price action is at a decisive crossroads, as the long-term support remains bullish, but momentum is turning increasingly bearish.
A breakdown below the current channel could trigger a deeper correction, possibly retesting bear market lows.
On the other hand, if LTC manages to hold support and consolidate, a breakout toward $300 remains possible.
The coming weeks will reveal whether Litecoin can reclaim bullish momentum or confirm the end of its cycle.