Litecoin’s (LTC) recent price movement has been marked by persistent rejection at key resistance levels, signaling weakness in its long-term structure. Despite positive news about an Exchange-Traded Fund (ETF), the Litecoin price failed to initiate a sustained upward movement. The technical outlook suggests that bearish pressure remains dominant, as momentum indicators confirm a fading of strength. Litecoin’s Technical Analysis The price of Litecoin has struggled since the end of 2024, falling below a diagonal resistance trend line (dashed). LTC failed to break out from the trend line five times (red icons), creating long upper wicks each time. The final rejection occurred in October, taking Litecoin’s price to a low of $52.71.
LTC did not hold its lows for long, bouncing and creating a massive long lower wick (green icon). However, the price also fell below the $110 horizontal area, validating it as resistance and confirming that the movements above it were just deviations. The area will provide resistance in the future, strengthened by the still-standing diagonal trend line.
Momentum indicators are also bearish. The weekly Relative Strength Index (RSI) is below 50, and the Moving Average Convergence/Divergence (MACD) made a bearish cross (black circle). Therefore, Litecoin’s bearish prediction suggests that the price will likely continue to decline until it reaches its long-term support level at $70. Litecoin’s Technical Analysis A closer look at the upward movement since June 2022 reveals that the price of Litecoin has been trading within an ascending parallel channel throughout this period. These channels typically exhibit corrective movements, so their eventual breakdown is the most likely future outcome. The fact that Litecoin trades in the lower portion of the channel makes this breakdown even more likely.
Furthermore, LTC has completed an A-B-C structure (black), where waves A and C have the same length, reinforcing that the upward movement has been corrective. The short-term six-hour chart confirms that the Litecoin price will likely continue to decline. The technical analysis shows that the price of Litecoin deviated above the $100 horizontal resistance area (black circle) before falling back inside the confines of an ascending parallel channel.
Like the long-term channel, the short-term channel suggests an eventual breakdown is likely. Once that happens, the price of Litecoin is likely to fall towards its previously outlined long-term support level near $70. LTC Faces a Critical Test Ahead With multiple rejections from resistance and a confirmed deviation above key horizontal levels, Litecoin’s chart structure leans heavily bearish. If the downward movement continues, the price of Litecoin could break down from its ascending parallel channel. The first significant support zone is $70, marking the diagonal channel support. If LTC loses it, it could fall to a new cycle low.