Litecoin (LTC), often compared to Bitcoin‘s secondary counterpart, finds itself under a significant declining trend, witnessing a decrease in value with consecutive lower highs being recorded. The trends of Bitcoin (BTC) hint at a potential correction in the market, which could impact Litecoin similarly. Traders and investors are recommended to monitor specific price levels of LTC to strategize effectively.
Litecoin’s Struggle to Break Past Trendline Resistance
From the end of 2021 to the early months of 2022, Litecoin’s valuation plummeted by 69%, although the pace of the decline has now decelerated. Despite Litecoin testing and momentarily breaching the weekly resistance around $100, it has not convincingly overcome the established downtrend. The performance of Bitcoin continues to play a pivotal role in determining Litecoin’s path, as a move towards a correction in BTC price may presage a drop in LTC towards the $90 support level.
Litecoin’s Recovery Scenarios and Price Targets
Should Litecoin’s price experience a bounce, likely influenced by Bitcoin’s market shifts, it could signal a lucrative buying point. Such a rebound could drive Litecoin to test the $119 mark. In an optimistic outlook, a surge could see LTC aiming for $150, with a long-term goal of revisiting the $200 psychological threshold.
The cryptocurrency‘s trajectory isn’t solely upward, however. A sharper downturn in Bitcoin could result in LTC plummeting below $90 and potentially reaching down to the $75 support area, a further 16% fall. The considerable difference from Litecoin’s all-time high of $412 to its current level emphasizes the substantial growth needed for recovery and significant attention to the broader crypto market’s trends is required.
The prospects of a new uptrend in the cryptocurrency market are crucial for LTC’s future, with its potential targets feasible, particularly in an altcoin favorable market. Nonetheless, the path forward presents considerable challenges for Litecoin, underscoring the importance of vigilant market monitoring by investors.