Litecoin has once again captured traders' attention after breaking through a key resistance level. However, the current price decline raises questions.
Current Situation with Litecoin
After a sharp move up to $110, Litecoin's price has returned below $100, currently sitting around $96.80. Trading volume has dropped by 25% today, and the price has slipped nearly 3%. The question is whether this is just a healthy pullback or if the rally is already losing steam.
Chart and Indicator Analysis
Charts reveal that Litecoin has broken free from the descending trendline that had acted as a resistance since February. It also cleared the 200-day Simple Moving Average around $99.95, confirming the start of a possible bullish phase. The current support zone between $93 and $95 aligns with the trendline retest, which could act as a springboard if defended. Above, the resistance zone at $100 to $102 remains valid. A successful push through this range would bring $110 back into play and potentially open a path toward $120.
Litecoin Price Forecast
In the short term, Litecoin must reclaim the 200-day SMA and push above $100 to keep bullish momentum alive. If this happens, the LTC price could revisit $110 and possibly head toward $120. However, failing to defend the $95 support zone may lead to a drop toward $87.
The current situation with Litecoin requires careful monitoring of support and resistance levels. Traders should exercise caution while waiting for confirmation of further movements.
