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Litecoin (LTC) Price Holds Key Support Level Despite 45% Decline

Published
Valdrin Tahiri
Published
By Valdrin Tahiri
Edited by Ryan James

Key Takeaways

  • Litecoin (LTC) bounced at a diagonal and horizontal support.
  • The Litecoin price is trading inside a descending parallel channel.
  • Can LTC break out from its channel or will it fall below support instead?

Litecoin began a long-awaited rally in November 2024, reaching its yearly high of $147.06 next month. Despite the breakout from several long-term resistances, LTC did not sustain its momentum and has fallen near its pre-breakout levels in 2025.

The silver lining in the decline is that Litecoin trades above a long-term horizontal and diagonal support level, a sign that the decrease could be a retest. Let’s look at the Litecoin technical analysis and see what lies ahead.

Litecoin Bounces at Support

The Litecoin price broke out from a descending resistance trend line in November 2024, reaching a new yearly high of $147.06 the next month. The breakout from the trend line coincided with a breakout above the $100 horizontal resistance area, which had existed for nearly two years.

The LTC price could not sustain the breakout, creating a lower high alongside some long upper wicks (black circles). However, it has shown strength in the ongoing crypto market crash. Even though the Litecoin price fell to a low of $80, it has regained its footing, creating a long lower wick (white icon).

More importantly, the price reclaimed the resistance trend line and traded inside the $100 horizontal support area.

Litecoin Weekly
LTC/USDT Weekly Chart | Credit: Valdrin Tahiri/TradingView 

While the price action shows some bullish signs, technical indicators are bearish. The Relative Strength Index (RSI) and Moving Average Convergence (MACD) are both falling.

More importantly, they have nearly crossed below their bullish thresholds, with the RSI falling below 50, while the MACD is making a bearish cross (black icons).

Therefore, the weekly time frame readings are inconclusive since the price action is bullish while indicators give a bearish prediction for Litecoin.

Can Litecoin’s Price Rally?

The daily timeframe outlook provides more of the same indecision. The price action shows several bullish signs. Litecoin still trades inside a descending parallel channel and has created long lower wicks (white icons) once it reaches it. Also, LTC validated the 0.618 Fibonacci retracement support level.

The wave count also suggests the LTC price could be in the fifth and final wave of its upward movement (white). If that is the case, the price can reach a high of $187, targeting the 1.61 external Fibonacci retracement of wave four.

LTC Movement
LTC/USDT Daily Chart | Credit: Valdrin Tahiri/TradingView 

Despite these positive signs, technical indicators are bearish. Similarly to the weekly time frame, the RSI and MACD are falling and have crossed below their bullish thresholds at 50 and 0, respectively.

However, because the price action is more decisively bullish than the indicators are bearish, a breakout from the channel is the more likely scenario. If that happens, the LTC price can reach a high of $187.49.

Alternatively, a breakdown could lead to a $70 support level retest.

Still Hope for Litecoin

Litecoin has held up better than most in the ongoing market crash, still trading near its December 2024 lows. The LTC price also bounced at a long-term diagonal and horizontal support level.

A breakout from its descending parallel channel can send the LTC price to $187.49.

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Valdrin Tahiri

Valdrin discovered cryptocurrencies while getting his MSc in Financial Markets from the Barcelona School of Economics in 2017. He has been an avid investor and trader since. Valdrin has written for several cryptocurrency media companies such as BeInCrypto and CoinGape.
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