After a period of growth against major crypto assets, Litecoin price dropped by 26%, reaching $94. Analysts discuss potential opportunities for investors.
Analysis of the Litecoin Market Situation
February was a dominant month for Litecoin, as the altcoin showed resilience amid the drop in Bitcoin prices. The positive social commentary was largely due to spot LTC ETF filings. Santiment data shows an increase in Litecoin active addresses to 445,000 during the month. Crypto and Forex trader Valeriya noted signs of 'reaccumulation' of Litecoin. According to her, testing the Points of Interest (POI) level might provide favorable conditions for opening a long position with a growth potential of 60%.
Key Support Levels for Litecoin
From a technical standpoint, Litecoin trades in a higher consolidation range, with the resistance range of $130 to $140 remaining unbreached. The daily chart shows the price staying above the 200-day exponential moving average (200D-EMA) since November 6, 2024. Support is indicated at $92–$100 and $80–$88. As of March 4, LTC tested $92–100 support range and recovered above the 200D-EMA. IntoTheBlock data adds on-chain confluence to these support ranges: between $79 and $90, 6.86 million LTC is held, whereas between $90 and $108, 17.84 million LTC is held.
Conclusion and Prospects
Amid current market structures, Litecoin faces resistance and support levels. Investors interested in cryptocurrency should carefully observe changes in support ranges at $79-$90 and $108-$90. Regardless of short-term fluctuations, analysts see potential in LTC but advise conducting research before investment decisions.
Despite the current decline, Litecoin holds potential for recovery. Key support levels and investor activity will play a crucial role in determining its future trajectory.
