Litecoin (LTC) has recently experienced a significant downturn, struggling amidst broader market volatility and failing to hold crucial long-term support levels. Despite brief periods of reprieve, the altcoin’s price action indicates a strong bearish sentiment, challenging the resilience of its investor base.
Litecoin's Retreat from Key Support
In recent trading, Litecoin's price suffered considerably, echoing Bitcoin's own volatility. After briefly touching $89.5k, Bitcoin's drop to a new low of $84.5k triggered a 7.5% decline for LTC within hours, pushing it to a new lower low of $72.64. This plunge saw Litecoin bulls concede control of the pivotal $80-$84 long-term support zone, a region previously highlighted as critical for its stability. Even its inclusion in Bitwise’s 10 Crypto Index ETF provided no substantial boost, underscoring the dominant selling pressure that has been relentless since early October.
Bearish Outlook and Future Targets
Analysis of the market structure reveals a predominantly bearish trend for Litecoin. With the loss of the $80 level, the next significant long-term support targets are identified at $73.4, $66.5, and $59.6. While a minor bounce is currently underway, possibly aiming for the magnetic zone around $82-$83, the overall sentiment remains overwhelmingly bearish. The unlikelihood of a sustained bullish reversal is high, with market indicators showing no appreciable buying pressure. Traders are advised to view any upward movement as an opportunity to short, given the strong resistance expected if the $80-$84 area is retested, further solidifying the prevailing downtrend.
