Home / Analysis / Crypto / Litecoin (LTC) Battles to Hold $100 Support as Bearish Pattern Looms

Litecoin (LTC) Battles to Hold $100 Support as Bearish Pattern Looms

Published
Victor Olanrewaju
Published

focus-text-wrap]Key Takeaways[/focus-text-wrap]

  • Litecoin price is trading within a descending triangle amid low demand.
  • Activity on the Litecoin network has fallen, which is bearish for the price.
  • Selling pressure rises as LTC could drop to the bear market support floor.

At the beginning of the year, Litecoin’s (LTC) price attempted to hit. $200. But it faced rejection as soon as it reached $138.

This decline has now made the price action worse with LTC struggling to exit a stubborn bearish pattern. With the current outlook, it appears that Litecoin price could struggle to trade below $100.

Litecoin Remains on the Edge

As of this writing, Litecoin price trades at $112.25. This value represents an 18% decline from the peak it reached on Jan. 17.

A descending triangle refers to a bearish pattern formed when a descending upper trendline converges with a second, flatter horizontal trendline.

In most cases, this patterns indicates that the downtrend is likely to extend downward.  With LTC still trading within the descending triangle on the 4-hour chart, the coin price is likely to undergo a correction.

Should the trend remain the same, then Litecoin price might fail to rise to the 121.08 resistance. Besides that, the cryptocurrency might also find it challenging to hold the support at $111.99.

Litecoin price analysis
LTC/USD 4-Hour Chart | Credit: TradingView 

In that scenario, a decline below $100 could happen in the short term.

From an on-chain standpoint, there has been a decline in the number of active addresses on the Litecoin network. Active addresses represent the number of unique wallets sending and receiving coins on a blockchain

When it increases, it is a bullish sign, indicating that price can increase. On Jan. 18, Litecoin active addresses was over 450,000.

However, today, that figure has dropped below 400,000. If this number continues to decline, then LTC value might continue to fall.

Litecoin network activity drops
Litecoin Active Addresses | Credit: Santiment 

LTC Price Prediction: No Breakout Yet

On the daily chart,  Litecoin price hit higher highs between November 2024 and January this year. But as of this writing, LTC has dropped below those peaks, hinting at an extended downturn.

According to the same chart, the Chaikin Money Flow (CMF). The CMF is a technical indicator that measures the level of accumulation or distribution around a cryptocurrency.

When the indicator’s reading rises and is positive, it indicates rising buying pressure. If sustained, this could drive the price higher.

Meanwhile, as of this writing, the CMF  has decline to the negative region. This indicates an increase in selling pressure.

Should the reading continue to fall, then LTC price might drop below $100. If this happens, Litecoin price might drop to the 0.236 Fibonacci retracement level at $82.02.

Litecoin price analysis
LTC/USD Daily Chart | Credit: TradingView 

However, if LTC breaks above the falling trendline, this trend might reverse. In that scenario, Litecoin price might jump to the 0.786 Fibonacci level at $128.66. If sustained, the price might also climb to $150.

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.
Was this Article helpful? Yes No

Victor Olanrewaju

Victor is a reporter at CCN. Currently residing in Lagos, Nigeria, Victor focuses on writing news and providing readers with on-chain and technical analysis. Before he joined CCN, he worked as an analyst at BeInCrypto and AMBCrypto. He published several pieces at these outlets detailing investor behavior and analyzing price action across different cryptocurrencies. Victor holds a Bachelor's degree in Physics from the University of Ibadan. With his background, he finds it seamless to break down technical terms into simpler words while keeping readers engaged.
See more