- Litecoin price faces its first weekly gain in three, but bearish bias prevails.
- Sustained bearish break of the triangle and downbeat momentum indicators keep LTC sellers optimistic of retesting the multi-month horizontal support.
- Litecoin rebound may gain momentum past $88.50; 200-day SMA is the key resistance.
- LTC looks set to end 2025 in the red, but a fresh yearly low appears to be tough.
Litecoin (LTC) price drops 1.0% to $85.60 while keeping the previous day’s pullback from a weekly high during early Friday. Still, the LTC snaps a two-week downtrend, but bears the burden of the third consecutive monthly loss and the first yearly loss in three.
The altcoin’s latest weakness could be linked to the previous week’s bearish breakdown of a symmetrical triangle ranging from early October.
Adding strength to the downside bias are the neutral conditions of the 14-day Relative Strength Index (RSI) and the bearish signals from the Moving Average Convergence and Divergence (MACD) momentum indicator.
Further, an improvement in the trading volume and a pullback in the market capitalization (market cap) also favor the LTC sellers. According to Santiment, Litecoin’s daily trading volume bounces off a weekly low to $429.34 million while the market cap eases to $6.56 billion by press time.
Notably, a slew of support levels and optimism in the cryptocurrency market challenge the LTC bears.
Litecoin Price: Daily Chart Favors Sellers
A sustained downside break of a seven-week symmetrical triangle, neutral RSI line, and bearish signals from the MACD keep the LTC directed toward the 78.6% Fibonacci retracement of its April-October upside, near $78.75.
However, major attention is on the broad support region comprising levels marked since April, between $71.80 and $73.50.
While the said support area is likely to contain the LTC’s weakness past $78.75, a downside break won’t hesitate to challenge the yearly low of $63.21.
On the contrary, the aforementioned triangle’s bottom line, close to $88.50, guards immediate recovery of the Litecoin price.
Beyond that, the 61.8% Fibonacci retracement level of $91.00, also known as the “Golden Fibonacci Ratio”, the said triangle’s upper boundary, around $99.60, and the 200-day Simple Moving Average (SMA) of $101.60 will be the LTC bear’s final line of defense.
In a case where Litecoin price remains firmer past $101.60, the monthly high of $113.56, October’s peak of $135.86, and the yearly top near $141.00 could flash on the bull’s radar.
Litecoin Price: Four-Hour Chart Highlights $79.20
On the four-hour chart, Litecoin price portrays a corrective bounce from a six-week support line, approaching a fortnight-old trendline resistance surrounding $88.00.
That said, the RSI and MACD momentum indicators favor short-term consolidation in the prices, but the quote’s sustained trading beneath the 200-bar SMA, as well as a bearish breakdown of the triangle on the daily chart, keep sellers hopeful.
Hence, the quote’s latest rebound remains elusive as long as the prices stay below the 200-bar SMA of $94.00, a break of which will highlight the daily chart’s higher levels.
Alternatively, a downward sloping descending support line from mid-October, close to $79.20, appears to be a short-term key support to watch for the LTC bears before the deeper levels discussed on the daily chart.
Conclusion
Litecoin’s latest pullback defends the previous week’s bearish breakdown of a triangle, suggesting further downside in price, especially when backed by RSI and MACD momentum indicators. However, a multi-month horizontal support appears to be a tough nut to crack for the LTC sellers.
Also read: Cryptocurrency Weekly Price Prediction: BTC, ETH, and XRP Tumble on Fed Buzz; More Pain Ahead?
