After a period of outperformance against major crypto assets, Litecoin’s (LTC) price dropped as low as $94, a 26% fall from the weekly open.
While the trade wars between the US, Canada, China, and Mexico continue to pressure the crypto market, multiple analysts have pointed out a potential opportunity in Litecoin.
Litecoin dip follows “overly bullish commentary” in February
In February, LTC was one of the few altcoins that exhibited price dominance against BTC. Litecoin remained at breakeven value for the month, while Bitcoin faced an 18% drop. Litecoin’s resilience led to positive social commentary surrounding the crypto asset, which was largely dominated by the spot LTC ETF filings.
Santiment data pointed out these developments and identified an increase in LTC active addresses to 445,000 over the month.
Irrespective of the current market structure, Valeriya, a crypto and Forex trader, stated that Litecoin displays “signs of reaccumulation.” The trader added,
“Testing the indicated level (POI) may provide favorable conditions for opening a long position. Growth potential: 60%”
Related: Bitcoin no longer ‘safe haven’ as $82K BTC price dive leaves gold on top
Key Litecoin levels to hold under $100
From a technical perspective, Litecoin trades in a higher consolidation range, where the overhead resistance range of $130 to $140 remains unbreached.
The daily chart shows that the price has remained above the 200-day exponential moving average (200D-EMA) since Nov. 6, 2024. A break below the 200D-EMA might indicate the early signs of a high time frame (HTF) bearish shift.
Under those circumstances, the immediate support for Litecoin remains between $92 to $100 and $80-$88. As illustrated in the chart, LTC retested support range 1 ($92 to $100) on March 4 before immediately recovering above the 200D-EMA.
The relative strength index (RSI) also dropped to 38, its lowest value since Aug. 8, 2024, deviating below a 7-month low.
Data from IntoTheBlock added more onchain confluence to the support ranges defined in the chart. Between $79 and $90, a total of 6.86 million LTC tokens were held by 1.73 million addresses, while 1.11 million addresses held 17.84 million LTC tokens in the $90 to $108 range.
Thus, in terms of trading volume, $108 and $90 is the immediate support range, while more holders are between $79 and $90.
Related: How low can the Bitcoin price go?
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
