- Litecoin has retreated to $97.8 after facing strong resistance at $113, triggering profit-taking and weakening bullish momentum.
- The cryptocurrency now sits at a critical support level, where a rebound could push it higher or further selling may drive it toward $89.7.
Litecoin (LTC) has encountered strong resistance after a recent rally, forcing the cryptocurrency to retreat to $97.8. The pullback has raised questions about whether LTC can regain its bullish momentum or if further declines are on the horizon.
What Caused Litecoin (LTC) to Drop to $97.8?
Litecoin’s recent rally saw the price climb toward $113, but strong resistance at this level triggered a wave of profit-taking. As traders opted to secure gains, selling pressure mounted, pushing LTC back down.
A decline in bullish momentum also contributed to the price drop. As buying enthusiasm waned, sellers took control, accelerating LTC’s descent toward the $97.8 support level. Broader market uncertainty, influenced by Bitcoin’s movements and macroeconomic factors, further weighed on sentiment.
Additionally, technical indicators played a role in Litecoin’s pullback. The failure to hold key moving averages signaled weakening strength, prompting traders to reassess their positions.
Will Bulls or Bears Take Control?
Litecoin now sits at a critical juncture. If buyers defend the $97.8 support level, LTC could see renewed interest, potentially pushing prices back toward $113. A strong breakout above this resistance could pave the way for a rally to $131.6 and beyond.
On the flip side, if selling pressure persists and LTC drops below $97.8, a further decline toward $89.7 and even $76.8 could unfold. This makes the current price range crucial for Litecoin’s short-term direction.
Key Levels to Watch
- Support: $97.8, $89.7, $76.8
- Resistance: $100, $113, $131.6
Litecoin is currently below its 50-day moving average, indicating bearish momentum. The Relative Strength Index (RSI) has retreated from overbought levels, signaling a slowdown in buying interest. However, trading volume has also declined, suggesting that the current pullback may be a temporary correction rather than the start of a prolonged downtrend.
Market Sentiment and Outlook
Despite the price retreat, institutional interest in Litecoin remains steady, with no significant outflows reported from major LTC investment products. Meanwhile, derivatives data suggests that leveraged positions have been unwinding, which could set the stage for a more stable price recovery.
Ultimately, Litecoin’s next move will depend on whether it can hold the $97.8 support level and regain bullish momentum. With the broader crypto market still facing uncertainty, traders are watching closely to see if LTC can rebound or if further downside is ahead.
